Amazon Web Service (AWS) has unveiled an expansion of its free credits program tailored for startups, aiming to cover the expenses associated with utilizing major AI models. This strategic move by the company is aimed at bolstering the market share of its AI platform, Bedrock.
In a bid to attract startup clientele, Amazon has broadened its offerings, now allowing its cloud credits to encompass the utilization of models from various providers, including Anthropic, Meta, Mistral AI, and Cohere.
The vice president and global head of startups at AWS, Howard Wright said “This is another contribution we’re making to the startup ecosystem. We hope startups will continue to choose AWS as their first destination.”
This initiative comes in the wake of Amazon’s recent $4 billion investment in Anthropic through convertible notes. As part of this strategic partnership, Anthropic will leverage AWS as its primary cloud provider, alongside utilizing Trainium and Inferentia chips for model development and training.
Wright emphasized that Amazon’s provision of free credits will significantly contribute to Anthropic’s revenue, further solidifying its position as one of the most favored models on Bedrock. “This is integral to ecosystem building. We are resolute in our commitment,” he added, highlighting AWS’s diverse array of choices and robust security measures tailored for startups.
Amazon disclosed that it has extended over $6 billion in credits to startups over the past decade alone, underscoring its dedication to fostering innovation within the startup ecosystem. In partnership with Y Combinator, AWS is now offering $500,000 in credits for the latest cohort launched in January. These credits can be utilized for accessing AI models and Amazon’s cutting-edge chips. Given the potential costs associated with AI usage, this initiative stands to significantly benefit startups.
Notably, Amazon is not alone in its endeavor to entice AI startups with free credits. Microsoft Azure offers credits for OpenAI’s models, while Google’s cloud credit extends to over 130 models on Vertex AI.
However, the substantial investments made by major tech players in AI startups have drawn regulatory scrutiny. The U.S. Federal Trade Commission (FTC) has initiated an inquiry into Microsoft’s backing of OpenAI, alongside scrutinizing Google and Amazon’s investment in Anthropic.