Amazon Web Services (AWS) has announced an expansion of its free credits program for startups to encompass the expenses associated with using major AI models, aiming to bolster the market share of its AI platform, Bedrock. In an interview with Reuters, the company revealed its strategy to attract startup customers by broadening the scope of its cloud credits to include models from various providers, including Anthropic, Meta, Mistral AI, and Cohere.
Howard Wright, Vice President and Global Head of Startups at AWS, described the move as a gesture to support the startup ecosystem, emphasizing the company’s desire for startups to choose AWS as their primary platform. He highlighted Amazon’s commitment to offering a diverse range of choices and ensuring security for startups utilizing its services.
The expansion of the free credits program comes on the heels of Amazon’s recent $4 billion investment in Anthropic through convertible notes. Under the terms of the agreement, Anthropic will leverage AWS as its principal cloud provider and utilize Trainium and Inferentia chips to develop and train its models. Wright noted that Amazon’s free credits would contribute to Anthropic’s revenue, highlighting the symbiotic relationship between AWS and its partners.
Amazon emphasized its long-standing support for startups, having provided over $6 billion in credits over the past decade. In collaboration with Y Combinator, the company is offering $500,000 in credits to the latest cohort launched in January, which can be utilized for AI models and Amazon’s chips. This initiative seeks to alleviate the financial burden of AI usage for startups, as costs can accumulate based on usage.
The provision of free credits by major cloud providers to attract AI startups is not unique to Amazon, with Microsoft Azure offering credits applicable to OpenAI‘s models and Google’s cloud credits extendable to over 130 models on Vertex AI. However, these investments in AI startups have drawn regulatory scrutiny, with the U.S. Federal Trade Commission (FTC) initiating an inquiry into Microsoft’s support of OpenAI, as well as Google and Amazon’s investments in Anthropic.