Amazon internal docs show AI startups cutting back on AWS usage

Internal documents from Amazon suggest many AI startups are delaying or reducing spending on AWS, opting to invest more directly in AI model infrastructure, developer tools, and GPU compute. The shift reflects startups evaluating cost tradeoffs and vendor flexibility amid surging GPU demand. Reports show that in the earlier YC cohort, only ~4.3% used AWS Bedrock, while the majority leaned toward OpenAI’s models. AWS is reportedly strategizing revised pricing and incentives to retain early-stage clients.