- Amazon Web Services increases the amount of credit that some startups can use on their products from $100,000 to $200,000.
- More than 280,000 startups run on AWS, including 96% of the “unicorns” in artificial intelligence and machine learning.
OUR TAKE
Amazon is best known for its massive online retail business, and most of its profits come from its AWS business, which it launches in 2006, long before the emergence of rivals Microsoft and Google. AWS is the market leader, with revenue of $25 billion in the first quarter, up 17% year-over-year.
–Zora Lin, BTW reporter
What happened
Amazon Web Services (AWS) has doubled the amount of credit that some startups can use on their products, from $100,000 to $200,000. Starting July 1, startups that have received Series a funding in the past year will be eligible for the raise.
Matt Garman, who started running AWS in early June, says working with start-ups will always be a focus. As competition from Microsoft intensifies, the company is doubling the amount of credit it offers to some startups using its cloud infrastructure for artificial intelligence services.
In the past, the $100,000 credit is due in one year, and now the $200,000 credit is due in three years, AWS says. A spokesperson for the company calls AWS the “far and away” leader in cloud computing, adding that more than 280,000 startups run on AWS, including 96% of the “unicorns” in artificial intelligence and machine learning.
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Why it’s important
Money is often the most valuable resource for startups. This move by AWS means that startups will be able to significantly reduce their cloud services overhead, allowing them to focus more on product development and market expansion. This support helps startups grow quickly and could lead to more innovative projects.
By providing more support for startups, AWS is able to further solidify its leading position in the cloud computing market. As competition in the cloud computing market intensifies, especially with the strong performance of competitors such as Microsoft, AWS’s increased credit limits help attract and retain customers.
AWS makes it clear that the credit boost is primarily aimed at startups using its cloud infrastructure for AI services. This means that AWS is actively promoting the development of artificial intelligence and machine learning, and hopes to build long-term partnerships with startups to jointly drive innovation in this area and drive more enterprises to use AWS cloud services.
