Amazon Web Services (AWS) is taking steps to attract startup customers by expanding its free credits program. In a recent interview with Reuters, the company revealed that it now covers the costs of using major AI models. This move aims to boost the market share of its AI platform Bedrock.
To achieve this, Amazon has extended its cloud credits to cover the use of models from other providers, including Anthropic, Meta, Mistral AI, and Cohere. The intention behind this expansion is to encourage startups to choose AWS as their primary cloud provider.
Howard Wright, Vice President and Global Head of Startups at AWS, emphasized the significance of this development. He stated, “This is another gift that we’re making back to the startup ecosystem, in exchange for what we hope is startups continue to choose AWS as their first stop.”
The decision to broaden its free credits program aligns with Amazon’s recent investment in Anthropic. The company invested US$4 billion in convertible notes, solidifying its commitment to supporting AI startups. As part of this investment, Anthropic will utilize AWS as its primary cloud provider and leverage Trainium and Inferentia chips to build and train its models.
Wright highlighted the benefits of Amazon’s free credits, stating that they will contribute to the revenue of Anthropic, a popular model on Bedrock. He made it clear that ecosystem building is a priority for the company, as demonstrated by its unapologetic approach to support startups.
Furthermore, Amazon emphasized that it has offered over US$6 billion in credits to startups over the past decade. Its partnership with Y Combinator is an additional initiative to support startups by providing US$500,000 in credits for the latest cohort launched in January. These credits can be utilized not only for AI models but also for Amazon’s chips.
The cost of using AI can be a significant challenge for startups. Recognizing this, major cloud providers such as Microsoft Azure and Google also offer free credits to lure AI startups. Microsoft Azure provides credits for OpenAI’s models, while Google’s cloud credits can be applied to over 130 models on Vertex AI.
It is worth noting that the investments of big tech companies in AI startups have attracted regulatory scrutiny. The US Federal Trade Commission (FTC) has initiated an inquiry into Microsoft’s backing of OpenAI, as well as the investments made by Google and Amazon in Anthropic.
FAQ
What is Bedrock?
Bedrock is Amazon Web Services’ AI platform that aims to provide startups with a wide range of choices and enhanced security features for AI development.
Which AI models are now covered by Amazon’s free credits?
In addition to its own models, Amazon’s free credits now cover models from providers such as Anthropic, Meta, Mistral AI, and Cohere.
How is Amazon supporting startups?
Amazon has extended its free credits program to startups and has offered over US$6 billion in credits over the past decade. It also partners with programs like Y Combinator to provide substantial credits to startup cohorts.
What other cloud providers offer free credits for AI startups?
Microsoft Azure offers credits for OpenAI’s models, and Google provides cloud credits that can be applied to over 130 models on Vertex AI.
Why are big tech investments in AI startups under scrutiny?
Regulatory bodies, such as the US Federal Trade Commission (FTC), are investigating the investments made by big tech companies in AI startups to ensure fair competition and compliance with antitrust laws.
Amazon Web Services (AWS) is making efforts to attract startup customers by expanding its free credits program. In addition to covering the costs of using its own AI models, Amazon’s free credits now also extend to models from other providers such as Anthropic, Meta, Mistral AI, and Cohere. This move is aimed at encouraging startups to choose AWS as their primary cloud provider.
The expansion of the free credits program is significant for the startup ecosystem, as it allows startups to access advanced AI models without the burden of high costs. Howard Wright, Vice President and Global Head of Startups at AWS, emphasizes the importance of this development in building a strong startup community. He highlights Amazon’s commitment to supporting startups and hopes that this gesture will incentivize them to choose AWS as their first choice.
Amazon’s decision to broaden its free credits program is in line with its recent investment in Anthropic. With a US$4 billion investment in convertible notes, Amazon demonstrates its dedication to nurturing AI startups. As part of this investment, Anthropic will use AWS as its primary cloud provider and utilize Trainium and Inferentia chips for building and training models.
The availability of free credits for startups benefits Amazon as well. Anthropic, a popular model on the Bedrock platform, will contribute to Amazon’s revenue through increased usage. The expansion of the free credits program further strengthens Amazon’s ecosystem-building approach, showcasing its commitment to supporting startups throughout their growth journey.
It is important to note that other major cloud providers, such as Microsoft Azure and Google, also offer free credits to attract AI startups. Microsoft Azure provides credits for OpenAI’s models, while Google’s cloud credits can be utilized for over 130 models on Vertex AI. The competition among these tech giants highlights the significance of the AI market and the potential it holds.
However, the investments of big tech companies in AI startups have attracted regulatory scrutiny. The US Federal Trade Commission (FTC) has initiated an inquiry into Microsoft’s backing of OpenAI, as well as the investments made by Google and Amazon in Anthropic. Regulatory bodies are keen on ensuring fair competition and compliance with antitrust laws in this rapidly evolving industry.
In summary, Amazon’s expansion of its free credits program for AI models is a strategic move to attract startups to choose AWS as their primary cloud provider. The company’s investments in AI startups and ecosystem building demonstrate its commitment to supporting the startup community. However, the industry’s competitive landscape and regulatory scrutiny highlight the complexities and challenges associated with this rapidly growing market.
For more information about AWS and its AI platform Bedrock, you can visit the AWS website.
The source of the article is from the blog toumai.es