Amazon has partnered with South Korea’s AI startup Upstage to enhance its Amazon Web Services (AWS) footprint in the Asia-Pacific region. The collaboration, announced recently, positions AWS as Upstage’s preferred cloud provider for training its large language model, Solar. This strategic alliance aims to leverage AWS’s advanced tools like SageMaker, Trainium, and Inferentia chips while targeting regulated industries, pointing toward future growth opportunities.
Beyond the cloud service partnership, Amazon has also made a minority investment in Upstage, indicating its commitment to the Korean AI ecosystem. This agreement includes a joint go-to-market strategy aimed at expanding AWS’s presence across APAC. AWS reported a 17.5% growth in cloud revenues in the second quarter of 2025, fueled by rising demand for AI services, illustrating the market’s potential.
In addition to Amazon’s developments, Microsoft and Alphabet Inc. are actively expanding in the AI and cloud sectors. Microsoft Azure reported a 39% year-over-year growth in Q4 fiscal 2025, while Google Cloud exhibited a 32% increase in the same period, showcasing the competitive landscape in AI services.
