"For Amazon Web Services, these "solopreneurs" and bootstrapped startups have emerged as a "blind spot" in its customer discovery process, which heavily relies on connections with venture capital firms, according to an internal document obtained by Business Insider. This has caused AWS to miss out on several high-growth startups as early customers, including SurgeAI and Base44. SurgeAI grew to $1 billion in revenue without outside funding."
"The rise of generative AI is messing with this successful formula. This new technology helps some startups get going with fewer employees. That means they sometimes need to raise less money. These smaller, often self-funded, businesses look from the outside like less interesting cloud customers, when in fact they may retain the ability to grow into substantial enterprises. This is part of a broader challenge for AWS, which is seeing a "fundamental" shift in how AI startups spend on cloud computing, Business Insider previously reported."
The generative AI boom has produced many single-person and bootstrapped startups that require little outside funding. AWS relies heavily on connections with venture capital firms for customer discovery, creating a blind spot for solopreneurs and self-funded companies. That blind spot caused AWS to miss early relationships with high-growth firms such as SurgeAI, which grew to $1 billion in revenue without outside funding, and Base44, which was acquired for $80 million. AWS warns the blind spot risks cloud market share because many large cloud customers historically began as startups. AWS plans to add a data-based prediction model to its VC-driven approach, while a company spokesperson denied missing early signals.
Read at Business Insider
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