Amazon Expands Startup Support with Free AI Model Credits

  • Amazon Web Services (AWS) now covers the costs of startup usage of major AI models like Anthropic, Meta, Mistral AI, and Cohere.
  • Howard Wright, AWS’s VP of Startups, sees this as a strategic move to reinforce AWS’s position as the top choice for startups.
  • Amazon’s recent $4 billion investment in Anthropic solidifies AWS as its primary cloud provider.
  • AWS has offered over $6 billion in credits to startups over the past decade.
  • AWS collaborates with Y Combinator, providing $500,000 in credits to startups for AI models and Amazon’s chips.
  • Other major cloud providers like Microsoft Azure and Google Cloud also offer free credits for AI startups.

Main AI News:

Amazon Web Services (AWS) has broadened its initiative of granting free credits to startups, now encompassing the expenses associated with utilizing prominent AI models, an exclusive interview with Reuters reveals. This strategic move aims to fortify the market dominance of its AI platform, Bedrock.

In an endeavor to entice startup clientele, AWS now extends its cloud credits to encompass the utilization of models from various providers such as Anthropic, Meta, Mistral AI, and Cohere. Howard Wright, AWS’s Vice President and Global Head of Startups, elucidated, “This constitutes another gesture extended to the startup ecosystem, with the expectation that startups will persist in choosing AWS as their premier destination.

This development ensures Amazon’s recent $4 billion investment in Anthropic through convertible notes. Under this agreement, Anthropic will leverage AWS as its principal cloud provider, harnessing Trainium and Inferentia chips for model development and training. Wright emphasized that Amazon’s complimentary credit would bolster Anthropic’s revenue, underscoring its significance as one of the premier models on Bedrock.

This initiative is integral to ecosystem cultivation, a facet we steadfastly stand behind,” Wright asserted, highlighting AWS’s diverse offerings and robust security provisions tailored to startups’ needs. Notably, AWS has allocated over $6 billion in credits to startups over the past decade.

Collaborating with Y Combinator, AWS is extending $500,000 in credits to the latest cohort launched in January. These credits can be allocated towards AI models and Amazon’s proprietary chips, mitigating the financial burden associated with AI usage, which could potentially impede startups’ growth trajectories.

While Amazon leads the charge in extending free credits to AI startups, other major cloud providers like Microsoft Azure and Google Cloud are not far behind. Microsoft Azure provides credits applicable to OpenAI’s models, whereas Google Cloud credits can be utilized across more than 130 models on Vertex AI.

Regulatory scrutiny looms over big tech’s investments in AI startups, with the U.S. Federal Trade Commission (FTC) initiating an inquiry into Microsoft’s support of OpenAI, alongside Google and Amazon’s stake in Anthropic. Despite these challenges, the trajectory of AI innovation remains unwavering, propelled by strategic partnerships and investments from tech behemoths.


Amazon’s expansion of free credits for AI models signifies a concerted effort to consolidate its dominance in the startup ecosystem. By covering the costs of utilizing major AI models, AWS aims to incentivize startups to choose its platform, potentially increasing its market share in the fiercely competitive cloud services market. This move also highlights the increasing importance of AI innovation in driving business growth and differentiation among cloud service providers.