AWS Expands Free Credits Program to Cover AI Model Costs for Startups

AWS Expands Free Credits Program to Cover AI Model Costs for Startups

Key Points:

  • AWS extends its free credits program to cover costs associated with using major AI models for startups.
  • The initiative aims to boost the market share of AWS’s AI platform Bedrock and attract startup customers.
  • Amazon’s recent $4 billion investment in Anthropic solidifies Anthropic’s reliance on AWS as its primary cloud provider.
  • Over the past decade, AWS has offered over $6 billion in credits to startups, with additional support provided through partnerships like Y Combinator.

Amazon Web Service (AWS) has announced that it is expanding its free credits program for startups, aiming to cover the costs of using major AI models. In an interview with Reuters, AWS revealed its plans to boost the market share of its AI platform, Bedrock, by offering cloud credits to startups for utilizing models from various providers, including Anthropic, Meta, Mistral AI, and Cohere.

Howard Wright, vice president and global head of startups at AWS, described the initiative as a gesture of support to the startup ecosystem. He emphasized the company’s desire for startups to choose AWS as their preferred cloud provider. This move follows Amazon’s recent $4 billion investment in Anthropic, which solidifies Anthropic’s reliance on AWS as its primary cloud provider and underscores the strategic partnership between the two entities.

By extending its free credit program to cover AI models, AWS aims to foster ecosystem building and contribute to the revenue of popular models like Anthropic on its Bedrock platform. Wright highlighted AWS’s commitment to offering startups various choices and robust security features.

Over the past decade, AWS has provided over $6 billion in credits to startups, demonstrating its ongoing support for the startup community. AWS is offering $500,000 in credits to the latest cohort launched in January as part of its partnership with Y Combinator. These credits can be utilized to access AI models and leverage Amazon’s chips, addressing the potential cost barriers associated with using AI technologies for startups.

AWS’s move to offer free credits aligns with similar initiatives by other major cloud providers. Microsoft Azure provides credits for accessing OpenAI’s models, while Google Cloud offers credits applicable to over 130 models on Vertex AI. However, these investments in AI startups have attracted regulatory scrutiny, with the U.S. Federal Trade Commission (FTC) launching an inquiry into Microsoft’s backing of OpenAI and Google and Amazon’s investment in Anthropic.

AWS’s expansion of its free credits program underscores its commitment to supporting startups in leveraging AI technologies while positioning Bedrock as a leading AI platform. Despite regulatory scrutiny, such initiatives demonstrate the competitive landscape in the cloud computing industry and the strategic importance of AI investments for major tech companies.

TechGolly editorial team led by Al Mahmud Al Mamun. He worked as an Editor-in-Chief at a world-leading professional research Magazine. Rasel Hossain and Enamul Kabir are supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial knowledge and background in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.

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