Amazon has announced its investment of $230 million in generative AI startups through Amazon Web Services (AWS) credits, in a bid to capture the growing market of AI clients. The company will provide early-stage generative AI startups with free access to computing power, AI models, and infrastructure if they choose to build their companies on AWS. This investment is part of Amazon’s commitment to supporting startups, as it already offers $1 billion in cloud credits each year.
Matt Wood, the Vice President of AI Products at AWS, emphasized the benefits of this investment, saying, “They’ll be able to iterate very quickly and pivot very quickly as necessary. Then ultimately, when they hit on that home run, they’ll be able to double down and get to the scale with security, responsibility, and consistency.”
In addition to the free credits, 80 early-stage companies globally will also receive support through the AWS Generative AI Accelerator program. Each startup admitted to the accelerator could receive up to $1 million in AWS credits.
Cloud providers like Microsoft Azure and Google Cloud often offer credits to attract enterprises to their services, as the costs of cloud usage can add up. Amazon has been expanding its cloud credits to cover the use of models from providers such as Anthropic, Meta, Mistral AI, and Cohere to further strengthen its AI platform.
The demand for AI has contributed to the accelerated growth of cloud providers. In the first quarter, AWS’s revenue rose by 17% to $9.42 billion, exceeding analyst expectations. However, the investment by tech giants in AI startups has raised concerns among regulators, who are closely monitoring the situation due to antitrust concerns.
Howard Wright, the global head of Startups at AWS, who managed startup relationships, recently left the company, though Amazon declined to comment on the move.
This move by Amazon showcases its continued dedication to the AI industry and its commitment to supporting innovative startups. With the provision of free credits and access to infrastructure, Amazon aims to foster the development of generative AI startups and help them scale with security and consistency. This investment not only benefits the startups but also strengthens Amazon’s position in the AI market. As the demand for AI continues to rise, cloud providers like Amazon are seizing the opportunity to capture a larger share of the market and maintain their growth trajectory.
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