Amazon (AMZN.O) announced a $230 million investment in artificial intelligence startups through Amazon Web Service (AWS) credits, underscoring cloud providers’ efforts to attract AI clients in early stages. This initiative will grant generative AI startups access to computing power, various AI models, and infrastructure at no cost if they establish their operations on AWS.
According to Amazon, they already allocate $1 billion annually in cloud credits to startups, with this new commitment specifically targeting support for generative AI ventures. Matt Wood, AWS’s Vice President of AI Products, highlighted the benefits, stating, “They’ll have the agility to iterate and pivot quickly as needed. Ultimately, when they achieve success, they can scale with security, responsibility, and consistency.”
Part of the investment will fund the AWS Generative AI Accelerator program, benefiting 80 early-stage companies globally. Each participant in the accelerator could receive up to $1 million in AWS credits. Cloud providers like Microsoft Azure (MSFT.O) and Google Cloud (GOOGL.O) commonly offer credits to attract enterprise clients due to the potential accumulation of cloud costs as usage grows.
Earlier this year, Amazon extended its cloud credits to encompass the use of models from providers such as Anthropic, Meta (META.O), Mistral AI, and Cohere, aiming to enhance its AI platform’s market share. The surge in AI demand has significantly boosted cloud service usage, contributing to AWS’s revenue increase of 17% to $9.42 billion in the first quarter, surpassing analyst expectations.
The investments by tech giants in AI startups have also drawn scrutiny from regulators concerned about antitrust issues. Howard Wright, who oversaw startup relationships at AWS, recently departed from the company, although Amazon declined to comment on his departure.
