August 2nd, 2024

YC closes deal with Google for dedicated compute cluster for AI startups

Google Cloud has launched a dedicated Nvidia GPU and TPU cluster for Y Combinator startups, offering $350,000 in cloud credits and support to enhance AI development and innovation.

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YC closes deal with Google for dedicated compute cluster for AI startups

Google Cloud has launched a dedicated cluster of Nvidia GPUs and Google tensor processing units for Y Combinator (YC) startups, aimed at supporting early-stage AI development. This initiative is part of Google Cloud's strategy to engage with promising AI startups, providing them with essential resources to build and train AI models. Each participating startup from YC's Summer 2024 cohort will receive $350,000 in cloud credits over two years, along with additional support including $12,000 in Enhanced Support credits and a free year of Google Workspace Business Plus. The goal is to foster long-term partnerships, as historically, about 5% of YC startups have achieved unicorn status. YC partner Diana Hu noted that many early-stage AI startups face compute limitations, making this partnership particularly valuable. The dedicated cluster will allow these startups to efficiently manage their high-performance computing needs, especially for training AI models, which often require significant computational resources in bursts rather than continuous operation. This collaboration is expected to attract more AI startups to Y Combinator, enhancing their ability to innovate and grow. Other venture capital firms, like Andreessen Horowitz, are also investing in GPU resources to support AI startups, indicating a growing trend in the industry to provide essential computing power to emerging companies.

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AI: What people are saying
The comments reflect a variety of perspectives on Google Cloud's initiative for Y Combinator startups.
  • Many commenters emphasize the importance of cloud credits for early-stage startups, noting how they facilitate rapid development.
  • There is some confusion regarding whether the credits are exclusive to Y Combinator startups or available to all AI startups.
  • Several users share personal experiences with cloud credits from other providers, highlighting their value in startup growth.
  • Some comments question Google's need to offer these credits, suggesting it may indicate a lack of external demand for their GPU and TPU resources.
  • One user discusses their own startup's approach to providing compute resources, indicating a competitive landscape in cloud services.
Link Icon 15 comments
By @zhyder - 3 months
This link doesn't indicate the credits are exclusive to YC, seems they're open to all AI startups: https://cloud.google.com/startup/apply
By @sashank_1509 - 3 months
In a startup I worked we received: 230k Google cloud credits, and 180k AWS credits no questions asked. Especially when your company is pre product and not scaling, these cloud credits allow you to iterate rapidly
By @snihalani - 3 months
private equity + public equity = unicorns. Thanks openai for the play.

next idea I'd love to see: professors getting grants/cloud credits to teach classes on the gcloud

By @aussieguy1234 - 3 months
how common is it for venture funds to buy bulk cloud services for use in startups they own/invest in?
By @p1esk - 3 months
Interesting, I’d expect Google to offer TPUs, not GPUs.
By @latchkey - 3 months
This is fun validation for what I've been working on for the last year!

My startup (Hot Aisle) is all about building, managing and deploying dedicated compute clusters for businesses. At the enterprise level of compute, there is a lot that goes into making this happen, so we are effectively the capex / opex for businesses that don't want to do this themselves, but want to have a lot more control over the compute they are running on.

The twist is that while we can deploy any compute that our customers want, we are starting with AMD instead of Nvidia. The goal is to work towards offering alternatives to a single provider of compute for all of AI.

You can't do this for others unless you also do it for yourself. As such, we're building our own first cluster of 16x Dell chassis with 128 MI300x GPUs deployed into a Tier 5 data center as our initial rollout. Full technical details are on our website. It has been a long road to get here and we hope to be online and available for rental at the end of this month.

One of my goals has also been to get Dell / AMD / Advizex (our var) to offer compute credits on our cluster. Those credits would then get turned around into future purchases to grow into more clusters. It becomes a developer flywheel... the more developers on the hardware, the more hardware needed, the more we buy. This is something unfamiliar to their existing models, so wish me luck in convincing them. Hopefully this announcement helps my story. =)

Edit: Getting downvoted. Would love to hear some dialog for why. I don't really consider this an advertisement, so apologies if you're clicking that button for that reason. I'm really just excited about learning about validation of my business model and explaining why.

By @Catenu - 3 months
I believe these deals are crucial for attracting people. In my experience, they play a significant role in helping early-stage startups get off the ground.
By @bushbaba - 3 months
Does this mean google doesn't have enough external customer demand to fill the needs of it's GPU and TPU resources?
By @CheekyBlunders - 3 months
Any interest in SOCOM (DoD)?
By @LarsDu88 - 3 months
This is great deal for Google and YC startups.
By @NKosmatos - 3 months
I know I’m going to be heavily downvoted because not all people have the same sense of humor, but I’m going to make the comment… Does this mean we’ll have a new server to host HN and also get native dark mode?

P.S. Yes I know that the server requirements are very low (explained by dang and others) and I also know there are many plugins and hacks to get dark mode ;-)

By @outside1234 - 3 months
So Google can't sell the GPUs to actually paying customers is what this tells me.

In contrast with Microsoft where they are GPU limited (don't have enough to sell).