Despite AWS's claim of having the most expansive collection of compute instances with Nvidia chips, Azure is growing much faster. Cloud infrastructure now makes up around 29% of Microsoft's total revenue and has become a significant contributor to its profit. In 2023, Microsoft, which recently surpassed Apple as the world's most valuable public company, generated nearly $83 billion in net income, up from $67 billion the previous year. The Intelligent Cloud segment, which includes Azure, contributed 46% of Microsoft's total operating income.
Key takeaways:
- Microsoft's Azure cloud infrastructure is quickly closing the gap with Amazon Web Services (AWS), with recent growth partly attributed to artificial intelligence (AI).
- Azure's revenue increased by 30% in the recent quarter, compared to AWS's 13% year-over-year growth.
- Microsoft has been adding GPUs to its data centers for clients to run AI models, contributing to the company's growth in the AI market.
- Azure now makes up around 29% of Microsoft's total revenue and has become a significant contributor to the company's profit.