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AI pushes quarterly cloud infrastructure revenue to $74B globally | TechCrunch

Feb 02, 2024 - techcrunch.com
The cloud infrastructure market has seen a significant growth in Q4 of 2023, reaching $74 billion, a $12 billion increase from the previous year, largely driven by interest in generative AI. The market for the entire year grew to $270 billion, up from $212 billion in 2022, with Synergy Research predicting that this growth is here to stay. Microsoft's partnership with OpenAI has given it an edge in the market, with its market share growing by two percentage points to 25% in Q4. Amazon still holds the largest share at 31%, despite a two-point drop, while Google's share remained steady at 11%.

The big three - Amazon, Microsoft, and Google - constitute 67% of the overall market share, equating to approximately $50 billion in total cloud revenue for a single quarter. In terms of quarterly percentage growth, Azure was up 30%, AWS up 13%, and Google Cloud up around 25%. Microsoft's aggressive approach to AI seems to be paying off, although it's still early days and Amazon and Google still have time to catch up.

Key takeaways:

  • The cloud infrastructure market has seen a significant growth this quarter, largely due to interest in generative AI, pushing the revenue to $74 billion in the fourth quarter of 2023.
  • The market share of Microsoft has grown by two percentage points to 25% in the fourth quarter, largely due to its partnership with OpenAI, while Amazon still leads with a 31% share.
  • Despite the law of large numbers, the growth in the cloud market is predicted to stabilize, resulting in large annual increases in cloud spending.
  • Microsoft seems to have taken the lead in AI in the enterprise, but there is still plenty of time for Google and Amazon to catch up.
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