Amazon Web Services (AWS) Doubles Cloud Credits for Startups to $200,000

Amazon Web Services (AWS) Doubles Cloud Credits for Startups to $200,000
Image credit: Amazon web services LinkedIn 

Amazon Web Services (AWS) is doubling the cloud credits available to eligible startups, increasing them from $100,000 to $200,000. This change, effective from July 1, targets startups that have secured a Series A funding round within the past 12 months.

Part of the AWS Activate program, these enhanced credits aim to foster innovation among early-stage companies lacking sufficient financial resources for scaling. The credits can be used for Amazon’s cloud computing resources, providing startups with more opportunities to grow.

The announcement was communicated to venture investors via email, as reported by CNBC. Matt Garman, the newly appointed AWS CEO, emphasized in a recent meeting with Silicon Valley founders that partnering with startups remains a core focus for AWS. He noted that startups working on artificial intelligence and solving global issues are particularly prioritized.

AWS has also extended the credit expiry period from one year to three years, offering startups greater flexibility in scaling their businesses. Currently, 280,000 startups, including 96% of AI and ML unicorns, run on AWS infrastructure.

Despite the positive reception from many startups, some critics argue that Amazon uses this scheme to strengthen its market dominance by enticing companies to rely on its services. Amazon’s cloud business holds about one-third of the entire cloud market, matching the combined market share of Microsoft and Google.

It's worth noting that AWS is not alone in offering substantial incentives. Microsoft, for example, provides up to $350,000 in Azure credits for startups in programs like Y Combinator.