Amazon’s $230 Million Investment in AI Startups via AWS
Amazon has announced that it will invest $230 million to support artificial intelligence (AI) businesses. The e-commerce giant revealed that this investment will be made in the form of Amazon Web Services (AWS) credits. With this investment, the company hopes to set an example for cloud providers looking to attract AI clients in their early phases.
How AWS Credits Will Benefit AI Business Startups
According to Reuters, these AWS credits will provide early-stage generative AI businesses with free access to processing capacity, AI models, and infrastructure. To use Amazon’s services, startups must first construct their companies on AWS. Furthermore, these credits will benefit 80 early-stage firms worldwide through the AWS Generative AI Accelerator program. Each startup accepted into the accelerator can get up to $1 million in AWS credits.
Cloud Providers’ Strategy for Attracting AI Startups
Aside from AWS, providing cloud credits to startups is a common practice among other cloud providers, like Microsoft Azure and Google Cloud. These companies provide credits to entice enterprises to use their services, as cloud charges can skyrocket with growing utilization. By offering cloud credits, Amazon aims to capture the attention of early-stage AI businesses and solidify their presence in the market.
Amazon’s Commitment to Supporting Generative AI Startups
Amazon stated that it already provides $1 billion in cloud credits to companies every year. With this new commitment, the company will focus on assisting generative AI startups as well. Matt Wood, vice president of AI Products at AWS, told Reuters that these startups will be able to “iterate and pivot swiftly as needed.” Then, once they succeed, they’ll be able to scale confidently and responsibly with AWS.
Expanding AWS Cloud Credits to AI Models from Other Firms
Earlier this year, Amazon expanded its cloud credits to include models from companies like Anthropic, Meta, Mistral AI, and Cohere. With these investments, the company hopes to boost the market share of its AI platform and further enhance its competitive edge in the evolving cloud computing landscape.
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