#AWS #Startups #CloudComputing
Amazon Doubles Value of Credits for Startups to Build on AWS Cloud
As I delved into the world of cloud computing, I discovered that Amazon is set to increase the credits it provides to certain startups for utilizing its cloud services. This move is a strategic response to the growing competition in the artificial intelligence sector, particularly from Microsoft.
Effective July 1, startups that have recently secured Series A funding will be eligible for $200,000 in credits, doubling the previous value. This adjustment is part of the AWS Activate program, which aims to support startups in building on Amazon Web Services (AWS). Seed-stage startups will continue to be eligible for $100,000 in credits.
Matt Garman, the newly appointed CEO of AWS, emphasized Amazon's commitment to working closely with startups during meetings with Silicon Valley founders. Garman highlighted AI companies as a key focus for AWS, underscoring the importance of collaboration with this segment.
Amazon's core business is its extensive online retail platform, but AWS has emerged as a significant profit driver since its inception in 2006, well ahead of competitors like Microsoft ($MSFT) and Google ($GOOGL). Despite AWS's leading position in the market, Microsoft Azure and Google Cloud are rapidly expanding, leveraging advancements in AI technologies to attract a growing number of clients.
To enhance its capabilities in generative AI, Amazon has invested heavily in Anthropic, a competitor to OpenAI. The departure of former AWS CEO Adam Selipsky, succeeded by Garman, marked a strategic shift for the company as it aims to regain ground lost to competitors in the cloud infrastructure space, particularly in generative AI.
Startup engagement is a pivotal strategy for cloud service providers, with Microsoft offering substantial Azure credits and access to GPUs for AI model training through partnerships with accelerators like Y Combinator. Amazon, on the other hand, has introduced a 10-week generative AI accelerator program, offering participants access to up to $1 million in cloud credits.
Original Article: https://www.cnbc.com/2024/06/28/amazon-doubling-value-of-credits-for-startups-to-build-on-aws-cloud.html
Leave a Reply