"Internal Amazon documents reveal that AI startups have been delaying AWS adoption, diverting early budgets toward AI models and tools, inference platforms, and new "neoclouds" that sell GPU access, according to a blockbuster scoop from Business Insider's Eugene Kim. Instead of relying on AWS for traditional cloud compute and storage, founders are starting with OpenAI, Anthropic, and AI tool providers such as Vercel, along with specialized GPU providers like CoreWeave."
"Back in 2023, I told you how the Cloud 2.0 era is defined by a new stack of specialized hardware, models, APIs, and developer tools. Many of these are outside the control of traditional cloud giants, and they are less sticky than traditional services such as compute, storage, databases, and analytics. This could be one reason why AWS growth has lagged other cloud providers that have more AI goodies to offer startups."
"Don't get me wrong: AWS is still the cloud king with the most market share. It has promising AI partnerships, especially with Anthropic. Yet as AI reshapes startup spending priorities, the question is whether AWS will still sit on this throne in five or 10 years' time. Kim asked Amazon for comment on all this, and they sent a long statement."
Amazon Web Services served as the infrastructure backbone for startups for nearly two decades by eliminating the need to buy servers or manage data centers. The rise of generative AI has created Cloud 2.0, prompting startups to allocate early budgets to AI models, inference platforms, and specialized GPU neoclouds instead of traditional cloud compute and storage. Founders increasingly start with OpenAI, Anthropic, AI tool providers like Vercel, and GPU specialists such as CoreWeave. Many new hardware, model, API, and tool layers sit outside traditional cloud control and prove less sticky than core services. AWS maintains market leadership but faces slower growth versus competitors with stronger AI offerings.
Read at Business Insider
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