Amazon Stocks Rise Higher as AWS Seeds Federal AI With $50 Million

This article first appeared on GuruFocus.

Amazon, the commerce and cloud giant (NASDAQ:AMZN), pledged up to $50 million in AWS credits over three years for federal scientific research, while shares stood at $258.41 at 10.05am EST on October 9, up approximately 1.71% from the previous close implied by Google Finance’s quote. The Golden Age of Science Accelerator gives AWS another route into government AI workloads. The valuation snapshot puts shares 3.15% above the $250.52 GF Value estimate, suggesting limited upside against that benchmark.

The opportunity starts with the Genesis Mission’s expansion to 14 additional federal agencies. According to Amazon’s announcement, eligible agencies and research partners develop proposals with AWS before selected projects receive credits through existing contracts. Spread evenly and fully used, the commitment would average roughly $16.7 million a year. That gives researchers room to…