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June 14, 2024

Amazon Supports Generative AI Startups With $230M Investment, Allocates $80M To Its Second AWS Generative AI Accelerator Program

In Brief

Amazon will invest $230 million to support startups developing generative AI applications, allocating $80 million to its second accelerator.

Amazon Supports Generative AI Startups With $230M Investment, Allocates $80M To Its Second AWS Generative AI Accelerator Program

Technology company Amazon announced its intention to invest up to $230 million to support startups developing generative artificial intelligence (AI) applications.

Of the total investment, $80 million will be allocated to fund the second AWS Generative AI Accelerator program. This initiative, managed by Amazon’s subsidiary Amazon Web Services (AWS), is dedicated to assisting startups in developing generative AI models to enhance their product innovation and service improvement.

Moreover, the majority of the funds will be provided as compute credits for AWS infrastructure. This stipulation requires the funded companies to utilize AWS services, preventing them from switching to other cloud service providers. It is common practice for cloud providers, including Microsoft Azure and Google Cloud, to offer credits to attract enterprises to their platforms. This strategy helps mitigate the substantial costs that can accumulate for companies as their cloud usage grows.

Additionally, Amazon has teamed up with Nvidia to offer expert guidance and technical support to the selected startups. These teams will also have the chance to join the Nvidia Inception program, which provides opportunities to connect with potential investors and access further consulting resources.

Amazon Boosts Investment in Generative AI Startups

Amazon already provides $1 billion in cloud credits annually to startups, with this new initiative specifically focusing on generative AI technologies. Notably, this year’s investment and support represent a significant increase compared to last year’s accelerator program, which invested approximately $6.3 million and backed 21 startups, each receiving up to $300,000 in AWS compute credits.

Along with the latest move, Amazon’s increasing investment in generative AI technology—encompassing initiatives such as the $100 million AWS Generative AI Innovation Center, free credits for companies utilizing leading AI models, and its Project Olympus model—demonstrates the company’s efforts to catch up with its rivals in the rapidly growing and competitive generative AI sector. Although Amazon reports that its generative AI ventures have achieved “multiple billions” in run rate, it is generally viewed as having been slow to capitalize on the generative AI wave.

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About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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