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Internal "Amazon Confidential" memos warn AWS is facing a fundamental shift as startups delay adopting its cloud and spend early budgets on AI models, inference, and GPU services that are easier to switch. YC's 2024 cohort leaned heavily on OpenAI and Anthropic, while use of multiple AWS services slipped; even "all-in" customers like Cursor spend the bulk on external AI APIs and neocloud GPUs. AWS calls the data outdated and says startups still choose its platform, citing recent wins and price cuts, even as rivals' faster growth and GPU-focused challengers intensify pressure.

Prepared by Christopher Adams and reviewed by editorial team.