Amazon revealed that it is investing $230 million in artificial intelligence startups in the form of Amazon Web Service (AWS) credits, in a recent attempt by cloud providers to court AI clients in their infancy.
In a recent move by cloud providers to court AI clients in their infancy, Amazon (AMZN.O.) announced that it is investing $230 million in the form of Amazon Web Service (AWS) credits in artificial intelligence firms. If early-stage generative AI startups choose to establish their businesses on AWS, the credits will grant them free access to infrastructure, a range of AI models, and processing capacity. With this new promise, Amazon says it will promote firms employing generative AI. Amazon claims to currently give $1 billion in cloud credits annually to entrepreneurs. They’ll have lightning-fast iteration and pivoting capabilities. In the end, they’ll be able to double down and reach the scale with stability and responsibility once they hit that home run.
The increased use of cloud services as a result of AI demand has accelerated the rise of cloud providers. For example, AWS exceeded analyst estimates in the first quarter, with revenue rising by 17% to $9.42 billion. Regulators are also taking notice of the internet giants’ investments in AI startups due to antitrust concerns. People familiar with the matter have learned that AWS’s global head of startups, Howard Wright, who oversaw startup connections, recently departed the organization. About the change, Amazon chose not to comment.
According to the company, a portion of the credits will also help 80 early-stage businesses around the world through the AWS Generative AI Accelerator program. AWS credits of up to $1 million could be awarded to each business accepted into the accelerator. Since cloud charges can mount up for a business as its usage grows, cloud providers, such as Microsoft Azure (MSFT.O) and Google Cloud (GOOGL.O), frequently give credits to entice businesses to use their services. In an effort to increase the market share of its AI platform, Amazon increased the scope of its cloud credits earlier this year to include the usage of models from suppliers including Anthropic, Meta (META.O), Mistral AI, and Coh.
The increased use of cloud services as a result of AI demand has accelerated the rise of cloud providers. For example, AWS exceeded analyst estimates in the first quarter, with revenue rising by 17% to $9.42 billion. Regulators are also taking notice of the internet giants’ investments in AI startups due to antitrust concerns. People familiar with the matter have learned that AWS’s global head of startups, Howard Wright, who oversaw startup connections, recently departed the organization. About the change, Amazon chose not to comment.
Also read: Unveiling the Ethical Imperatives: Navigating the Intersection of AI and Cybersecurity
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