In June 2024, AWS doubled the top-tier credit offering from $100,000 to $200,000 for eligible startups in the AWS Activate program. This move is a bold response to cloud market competition and a major opportunity for early-stage companies.
In this guide, weโll break down what the AWS $200k credits mean, who qualifies, how to apply, and what you can do with those cloud dollars.
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What Is AWS Activate?
AWS Activate is Amazonโs startup support program. It offers cloud credits, business support, and technical resources to help founders build and scale faster. Until mid-2024, the maximum credit amount was $100,000.
But starting June 28, 2024, AWS doubled the cap to $200,000 for startups backed by select venture capital firms and accelerators.
“Amazon is aiming to retain startup loyalty early in their journey โ especially before they commit to rivals like Google Cloud or Microsoft Azure.”
โ CNBC, June 2024
This increase makes AWS Activate the most generous cloud credit program on the market, surpassing both Googleโs and Microsoftโs offers.
Who Qualifies for the AWS $200K Credit Package?
Not every startup gets $200K off the bat. Hereโs how the tiers work:
| Startup Stage | Credit Amount | Requirements |
|---|---|---|
| Early-stage (pre-seed/seed) | $5K โ $100K | Enrolled in AWS Activate through a partner |
| Growth-stage (Series A & up) | Up to $200K | Backed by eligible VC/accelerator + Series A |
Youโre eligible if:
- Youโre affiliated with one of AWSโs Activate Providers (e.g. Y Combinator, Sequoia, Techstars, etc.)
- You havenโt already maxed out AWS Activate credit tiers
- You have a valid AWS account with your startupโs domain
You can check your eligibility on the AWS Activate website.
Why Did AWS Boost the Credits to $200K?
There are two main reasons:
- Cloud war is heating up. Azure and Google Cloud are aggressively chasing startups. Offering more AWS startups credits keeps founders in AWSโs ecosystem.
- Generative AI startups are burning more compute. Training models, running inference, or scaling applications on GPUs gets expensive quickly. AWS wants these high-growth companies to stay on their infrastructure.
Amazon reported in early 2024 that AI startups are the largest consumers of Activate credits. Giving them more headroom makes business sense.
โSome startups spend $50K+ on cloud just testing models. $100K wasnโt enough anymore.โ โ AWS Solutions Architect (via Reddit)
How Startups Actually Use AWS Credits
The new $200K package can cover a wide range of infrastructure costs. Hereโs how most startups typically spend it:
Common AWS Services Covered:
- Amazon EC2: Virtual servers (including GPUs for AI)
- Amazon S3: Object storage for backups, data lakes, assets
- Amazon RDS / DynamoDB: Managed databases
- Amazon SageMaker: AI/ML model training and deployment
- Elastic Beanstalk / ECS / EKS: App deployment and container orchestration
Whatโs Not Covered:
- 3rd-party Marketplace tools (unless billed via AWS)
- AWS Premium Support (unless explicitly stated)
- Credits expire after 1 year and canโt be renewed
Tip: AWS credits apply automatically to your monthly bill once activated โ no extra effort needed.
Is the AWS $200K Credit Worth It?
Absolutely โ if you plan to build a cloud-based startup, hereโs what you get:
Pros:
- Save up to $200,000 in actual cloud spend
- Accelerate MVP or product build without upfront infra costs
- Avoid vendor lock-in โ most startups donโt pay full AWS bills for at least 12โ18 months
- Get access to AWS technical support and architecture sessions
Cons:
- You must use credits within 12 months
- Any overage (once credits run out) is billed normally
- Some founders report โoverbuildingโ because it feels like free money โ be disciplined
How to Apply for AWS Activate $200K Credits
- Go to AWS Activate Startup Program
- Sign in with your AWS account
- Enter your startup details, including company domain and Activate Provider (your VC or accelerator)
- Upload funding verification if requested (for Series A or above)
- Wait for email confirmation โ usually within 3โ5 business days
Already used the $100K before? You may still qualify for a top-up to $200K โ AWS is allowing some startups to claim the extra amount if they meet updated criteria.
Summary Table
Hereโs a quick breakdown of the new AWS startup credit structure:
| Program Tier | Funding Stage | Credit Amount | Duration | Requires Activate Provider? |
|---|---|---|---|---|
| Builder Package | Bootstrapped / early | $5K โ $25K | 1 year | Yes |
| Founders Tier | Seed round | $25K โ $100K | 1 year | Yes |
| Growth Tier (New) | Series A+ | Up to $200K | 1 year | Yes |