Amazon invests $230mln in form of AWS credits in AI startups

The credits will provide early-stage generative AI startups free access to computing power, a variety of AI models, and infrastructure, if they build their firms on AWS

Amazon said it is investing $230 million in the form of Amazon Web Service (AWS) credits in AI startups, the latest example of cloud providers trying to capture AI clients from initial stages.

The credits will provide early-stage generative AI startups free access to computing power, a variety of artificial intelligence models, and infrastructure, if they build their firms on AWS.

Amazon says it already offers $1 billion in cloud credits every year to startups, with this new commitment focusing on supporting generative AI startups.

They’ll be able to iterate very quickly and pivot very quickly as needed. 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, said Matt Wood, VP of AI Products at AWS.

Part of the credits will also support 80 early-stage firms globally through the AWS Generative AI Accelerator program, the firm added. Each startup admitted to the accelerator could receive up to $1 million in AWS credits.

It is common for cloud providers, from Microsoft Azure to Google Cloud, to offer credits to attract businesses to use their services, as cloud costs can pile up for a firm as their usage increases.

Earlier this year, Amazon has expanded its cloud credits to cover the use of models from providers like Anthropic, Meta, Mistral AI, and Cohere, as the company aims to boost the market share of its AI platform.

The demand for artificial intelligence has driven up the usage of cloud services, contributing to the accelerated growth of cloud providers. For example, AWS’s revenue increased 17% to $9.42 billion in the first quarter, surpassing analyst expectations. The investment by tech giants in AI startups has also attracted attention from regulators over antitrust concerns.