Microsoft is extending a helping hand to select startups
In response to the ongoing AI chip shortage,Microsoft is extending a helping hand to select startups by providing complimentary access to powerful Azure cloud resources for AI model development.
Microsoft has announced an update to its startup program, Microsoft for Startups Founders Hub, introducing a no-cost Azure AI infrastructure option. This includes access to high-end Nvidia-based GPU virtual machine clusters tailored for training and running generative models, such as large language models similar to ChatGPT.
In an exclusive move, Y Combinator and its community of startup founders will be the first beneficiaries during the private preview. Microsoft’s choice of Y Combinator as the initial partner is strategic, given its proven track record of working with startups in their earliest stages.
Annie Pearl
VP of Growth and Ecosystems at Microsoft, emphasized the collaboration with Y Combinator to prioritize the needs of their current cohort and alumni during the initial preview. The focus will be on tasks like training and fine-tuning use cases to foster innovation.
This isn’t the first time Microsoft has sought to engage with Y Combinator startups. Back in 2015, the company offered $500,000 in Azure credits to YC’s Winter 2015 batch, aiming to attract these startups away from competing cloud services. The current initiative with GPU clusters for AI training and inferencing follows a similar vein, aligning with Microsoft’s vision of Azure as the premier platform for building AI solutions.
While acknowledging that Azure is their preferred system for AI solutions, expanding the scope of this initiative beyond Y Combinator. The company is collaborating with M12, its venture fund, and startups in M12’s portfolio to broaden access to the GPU clusters. Furthermore, Microsoft plans to partner with additional startup investors and accelerators over time, with the overarching goal of making AI model training and running more accessible for promising startups.
Microsoft’s approach stands out by allowing the application of credits not just for general cloud use but specifically for training and fine-tuning AI models in the earlier stages of startup development. Although the offering is not a perpetual freebie, as access to the clusters is time-bound, it provides startups with the opportunity to test and trial their operations without immediate financial constraints.
In positioning this initiative, Annie Pearl highlights its uniqueness within the AI ecosystem. She describes it as the first program of its kind targeting early-stage startups, providing them with free GPUs to train their AI models and drive the next wave of AI innovation. While AWS and Google Cloud also offer startup programs, strategy of collaborating with investors may give them a competitive edge in this space.
