Companies building artificial intelligence models into their software products need a lot of computation power, also known as “compute.” But this can be a costly expense.
That’s why the AI2 Incubator in Seattle decided to find a way to provide its portfolio companies with free AI compute. The organization announced Thursday that it has secured $200 million in computing power from unnamed cloud providers and data centers.
“This is, to our knowledge, the single biggest compute allocation available to startups right now,” said Jacob Colker, managing director at the AI2 Incubator.
In 2022 the AI2 Incubator spun off from its original home, the Allen Institute for Artificial Intelligence, into a separate entity. The firm runs an incubator and a venture fund that raised $30 million in fresh capital last year.
Any company that partners with the AI2 Incubator “in any way, shape, or form” can get access to up to $1 million in AI compute, Colker said.
“We’ve been doing AI forever,” Colker said. “And we know what these types of folks need.”
Getting access to more computing power is important for AI-focused startups looking to differentiate and scale their models.
“We believe that there are hundreds of founders out there who are capable of building the next technology titans, but they’re forced to quell their ambitions because they just don’t have privileged access to sufficient compute power,” Colker said.
The partners providing the compute power are not receiving equity in AI2 Incubator startups, Colker said.
The compute offering could help give the AI2 Incubator a boost as it competes with other incubators and venture investors looking to attract AI startups.
Earlier this month Seattle-based startup studio Pioneer Square Labs announced new AI investing partnership with Silicon Valley firm Mayfield.
Past spinouts from the AI2 Incubator include Kitt.ai, which was acquired by Baidu, and Xnor.ai, acquired by Apple. Its startups have raised more than $200 million collectively. The firm invests in companies across North America.
Investors in the incubator’s fund include Madrona Venture Group, Sequoia Capital, and Two Sigma Ventures.
Last month veteran entrepreneur Yifan Zhang joined the AI2 Incubator as its second managing director.
