Tech giant Amazon announced that its cloud computing arm Amazon Web Service will make an  investment of $230 million in early-stage Gen AI startups worldwide. This initiative is made by the  company to offer early-stage startups with AWS cloud computing credits, and mentorship, and provide  them tips to utilize machine learning and Artificial intelligence technologies properly. 

The startup that will participate in this program will have access to various Amazon Web Services  including computing, database, storage, and customized AI chips through AWS credits. The mentorship  and training of gen AI models in apps including ChatGPT need a huge amount of computing power that  helps in reducing the cash reserve of startups. The tech giant is trying to attract Gen AI startups globally  by offering free access to AI models, AWS services, and infrastructure. 

Image source: Wikipedia.com 

This investment is a step toward Amazon’s strategy to back up startups and add to $1 billion in cloud  credits it offers annually. The Vice president of AI products at AWS, Matt Wood mentioned that this  investment will help startups to quickly scale up their operations while enhancing their products and  technologies. Through the AWS Generative AI Accelerator Program, some portion of these credits will  be used to support around 80 early-stage startups. The investment will profit AWS as the cloud costs increase with an increase in the company’s size and through this initiative AWS aims at securing long term clients by helping them scale up from early-stage.  

The AI demand is continuously growing in the market leading to more usage and growth of cloud  service providers like AWS. Amazon recently expanded its cloud credits to enable the use of AI models  and enhance its AI platform. The company worked with Mistral AI, Meta, Anthropic, and Cohere to  increase its market share. AWS reported its first quarter revenue got increased by 17 percent to $9.42  billion.  

Conclusion: 

Amazon reported that its cloud subsidiary AWS will be making an investment of $230 million in gen AI  startups all around the world. The startups participating in this program will get free access to various  Amazon Web Services including database, storage, computing, and infrastructure. Through this  program, AWS will teach and mentor these gen AI startups on properly utilizing cloud services,  machine learning, and Artificial Intelligence technologies. The training and mentorship will help  startups learn more about AI models and how to scale up efficiently. AWS is aiming for long-term  clientsthrough this initiative by assisting companies to grow from early-stage as the increase in startup  size will lead to more need for cloud storage and services. The tech giant is trying to attract Gen AI  startups globally by offering free access to AI models, AWS services, and infrastructure. Through the  AWS Generative AI Accelerator Program, some portion of these credits will be used to support around  80 early-stage startups. This investment will help startups to quickly scale up their operations while  enhancing their products and technologies.