Some startups are receiving double the value of credits from Amazon to use its AWS platform, as Microsoft's cloud gains traction.

• CNBC has learned that Amazon Web Services is increasing the value of credits that some startups can use on its products from $100,000 to $200,000.
• From July 1, startups that have received a Series A funding round in the past year will be eligible for an increase, as announced in an email to venture investors this week by AWS.
• Matt Garman, who took over AWS in early June, informed founders during a Silicon Valley meeting this week that working with startups will always be a priority.

CNBC has learned that the company is doubling the value of credits it offers some startups to use its cloud infrastructure as it faces increased competition from AI services.

From July 1, startups that have received a Series A funding round in the past year will receive $200,000 in credits through AWS' Activate program, an increase from $100,000 previously. Seed-stage startups will still receive $100,000 in credits, AWS announced in an email to venture capitalists this week.

Two unnamed individuals who were informed about the changes confirmed the credit increase, but an AWS spokesperson declined to provide a comment.

Matt Garman, who was recently promoted to CEO of AWS, met with founders in Silicon Valley this week. Garman emphasized that collaborating with startups would always be a top priority, and described AI companies as AWS' ideal customers, according to one of the people present.

AWS, launched by Amazon in 2006, generates most of the company's profits and leads the market with $25 billion in revenue in the first quarter, up 17% from the previous year.

Microsoft Azure and Google Cloud are experiencing rapid growth and are benefiting from the advancement of AI models. Microsoft, through its support, launched ChatGPT on Azure in late 2022, which attracted a significant number of AI workloads from various companies. Google, on the other hand, has several large language models, including Gemini.

OpenAI challenger Anthropic has received billions of dollars from Amazon to improve its generative AI capabilities.

AWS CEO Adam Selipsky resigned after three years in charge, with Garman named as his successor. Under Selipsky's leadership, Microsoft and Google increased their market share in cloud infrastructure. One analyst told CNBC that Microsoft outperformed AWS in generative AI.

Cloud infrastructure companies have found fertile ground in startups, attracting ambitious founders with the potential to create the next multibillion-dollar business.

Microsoft has announced a partnership with Y Combinator, a Silicon Valley accelerator, to provide participating startups with $350,000 in Azure credits and access to graphics processing units (GPUs) for training AI models. Additionally, Microsoft has extended the $350,000 credit incentive to other accelerators, including the AI Grant.

Microsoft's Founders Hub program offers up to $150,000 in Azure credits to startups without prior venture funding over a four-year period.

The website states that Amazon has a new 10-week generative AI accelerator program in addition to its Activate offering. Participants can access up to $1 million in cloud credits.

On Friday, Amazon's head scientist, Rohit Prasad, announced that the company has hired David Luan, co-founder and CEO of AI startup Adept, along with some of Luan's colleagues. Additionally, Amazon is licensing Adept's agent technology, a family of state-of-the-art multimodal models, and a few datasets.

AWS is set to increase its investments in Singapore's cloud infrastructure by $9 billion.