AWS expands free credits program for startups to use AI models

AWS free credit program: Amazon Web Services (AWS) has expanded its free credits program for startups, now covering the costs of using major AI models, the company revealed in an interview with Reuters. This strategic move aims to boost the market share of its AI platform, Bedrock.

In an effort to attract startup clientele, Amazon now permits its cloud credits to encompass the usage of models from other providers, including Anthropic, Meta, Mistral AI, and Cohere.

Howard Wright, vice president and global head of startups at AWS, emphasised, "This is another contribution we're extending to the startup ecosystem, in the hopes of fostering continued preference for AWS as their primary choice."

This expansion follows Amazon's recent $4 billion investment in Anthropic through convertible notes. Under the terms of the agreement, Anthropic will use AWS as its primary cloud provider and leverage Trainium and Inferentia chips for model development and training.

Wright highlighted that Amazon's free credits will raise the revenue of Anthropic, a leading model on Bedrock, highlighting, "That's part of ecosystem cultivation. We stand firm in that stance." He also underscored AWS's diverse array of options and stringent security measures, which are advantageous to startups.

Amazon has already allocated over $6 billion in credits to startups over the past decade. In collaboration with Y Combinator, it is offering $500,000 in credits for the latest cohort launched in January, applicable to AI models and Amazon's chips. Given the potential costs associated with AI usage, especially for startups, these credits can significantly mitigate financial burdens.

It's worth noting that Amazon is not the only major cloud provider offering free credits to entice AI startups. Microsoft Azure provides credits for using OpenAI's models, while Google's cloud credits extend to over 130 models on Vertex AI.

However, these investments by big tech companies in AI startups have attracted regulatory scrutiny. The US Federal Trade Commission (FTC) has initiated an inquiry into Microsoft's support of OpenAI, as well as Google and Amazon's investment in Anthropic.

(With Reuters inputs)