Amazon Web Services (AWS) is stepping up its game in the AI market share race by investing hundreds of millions of dollars in cloud credits for AI startups. The move comes as Google, Amazon, and Microsoft compete to attract the world’s largest startups as customers.
AWS recently doubled its cloud credits offering for startups to $100,000 to $200,000 within its AWS Activate program. The company also committed $230 million to expand its Generative AI Accelerator program, offering startups the opportunity to receive up to $1 million in cloud credits.
However, Microsoft Azure and Google Cloud are also offering millions of dollars in cloud credits to attract AI startups to their platforms. There is currently a “search for a billion-dollar AI startup” underway as these major cloud providers aim to have startups build innovative AI products on their infrastructure.
Cloud credits help startups offset IT costs like computing, storage, and databases, making it easier for them to scale their businesses. Startups that receive cloud credits from a vendor are likely to become customers of that vendor’s AI offerings, driving market share in the AI space.
AWS’s increased cloud credits come at a time when its market share has slightly declined, with Microsoft and Google gaining ground. To compete, Google Cloud launched the Google for Startups Cloud program offering up to $350,000 in credits for AI startups, while Microsoft offers $150,000 in Azure cloud credits through its Founders Hub program.
In an effort to further support startups, AWS revamped its AWS Activate program to extend loan maturity and enable the use of third-party AI models hosted on Amazon Bedrock. The company increased the maturity of its loans from one year to three years, providing more flexibility for startups.
AWS CEO Matt Garman emphasized the importance of generative AI and the need for increased cloud credits to support startups in this space. He believes that investing in AI startups will not only benefit AWS but also advance the adoption of generative AI across industries.
In conclusion, AWS’s investment in cloud credits for AI startups reflects a competitive landscape where major cloud providers are vying for market share in the AI sector. By incentivizing startups to build on their platforms, AWS, Google, and Microsoft are positioning themselves as leaders in the AI market of the future.
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https://www.crn.com/news/ai/2024/aws-cloud-credits-blitz-for-ai-startups-5-huge-things-to-know