Amazon is committing up to $230 million to support startups focused on generative AI-powered applications. This substantial investment aims to solidify Amazon Web Services (AWS) as the preferred cloud infrastructure for these innovative ventures.
Out of the total investment, approximately $80 million will be allocated to Amazon’s second AWS Generative AI Accelerator program. This program is designed to support startups by providing compute credits for AWS infrastructure, which means the funds are intended specifically for use within AWS and cannot be transferred to other cloud service providers like Google Cloud or Microsoft Azure.
Partnership with Nvidia
To enhance the program’s appeal, Amazon is partnering with Nvidia. Startups in this year’s accelerator cohort will have access to Nvidia’s experts and technology. Additionally, they will be invited to join the Nvidia Inception program, offering further opportunities to connect with potential investors and receive additional consulting resources.
The AWS Generative AI Accelerator program has seen significant growth since last year. In 2022, the program supported 21 startups, each receiving up to $300,000 in AWS compute credits, totaling an investment of around $6.3 million. This year’s expanded commitment demonstrates Amazon’s increased focus on fostering innovation in the AI space.
Amazon’s Commitment to AI Innovation
Matt Wood, VP of AI products at AWS, emphasized the company’s commitment to helping startups launch and scale their businesses. He stated, “With this new effort, we will help startups launch and scale world-class businesses, providing the building blocks they need to unleash new AI applications that will impact all facets of how the world learns, connects, and does business.”
Amazon’s increased spending on generative AI includes initiatives like the $100 million AWS Generative AI Innovation Center, free credits for startups utilizing major AI models, and the Project Olympus model. These efforts come as Amazon strives to keep pace with competitors in the burgeoning generative AI market.
AWS initially planned to introduce its own generative AI model, codenamed Bedrock, at its annual conference in November 2022. However, significant bugs delayed the launch, leading to the eventual release of Amazon’s Bedrock model hosting service later.
Challenges with Alexa and Missed Opportunities
Amazon’s Alexa division has faced numerous challenges, including technical setbacks and internal conflicts. Despite a high-profile demonstration of a “next-gen” Alexa, the updated version remains far from ready for market release, hindered by insufficient training data and limited access to training hardware.
Additionally, Amazon missed early investment opportunities with leading AI startups like Cohere and Anthropic. Although Amazon later attempted to invest in Cohere, it was rejected and instead co-invested $4 billion in Anthropic alongside rival Google.
Amazon’s increased focus on AI investments has attracted regulatory attention. The U.S. Federal Trade Commission recently initiated an inquiry into Microsoft’s backing of OpenAI and Amazon’s investment in Anthropic. European policymakers have also expressed concerns about such deals, indicating potential regulatory hurdles for Amazon moving forward.
By committing significant resources to generative AI startups and forming strategic partnerships, Amazon aims to reinforce its position in the competitive AI landscape, despite the challenges and missed opportunities it has faced.
