Rudina Seseri, founder and managing partner at Glasswing Ventures, predicts that there will be substantial investment in AI-optimized infrastructure by major cloud platforms, which will facilitate the building of AI platforms and products on the cloud. The financial rewards of this trend have already started to show, with Amazon's cloud growth rising to 17% this quarter with revenue of $25 billion. Azure and Google also continue to perform well in the market. The cloud market is now a $300 billion industry, growing at 21% per year, and is expected to double in size over the next four years.
Key takeaways:
- The cloud market was up $13.5 billion to $76 billion, up 21% of the first quarter in 2024, driven by generative AI and the data required to build the underlying models.
- There is a symbiotic relationship between the rapid advancement and adoption of AI and the scalable ‘Big 3’ cloud infrastructure providers, making the cloud providers more valuable.
- Startups are predicted to increasingly build on top of the infrastructure of the major cloud platforms, with immense investment expected in AI-optimized infrastructure.
- The annualized run rate of the cloud market is now at $300 billion, growing at 21% per year, and is forecasted to double in size over the next four years.