Cloud heavyweights AWS, Microsoft Azure and Google Cloud Platform (GCP) are poised to use AI as a key driver of cloud infrastructure growth.
According to IoT AnalyticsMicrosoft is becoming a leader in cloud AI, especially in genAI, and has passed both AWS and Google.
Microsoft is leading the way in generative artificial intelligence
Microsoft accounted for 45% of new cloud AI case studies, including 62% of genAI projects. The success is largely due to its collaboration and acquisition of OpenAI, which improved its position in the market.
AWS, on the other hand, excels in traditional AI. It captured 15% of new cloud AI case studies, with 85% focused on non-genAI, showing its strength in legacy AI.
Google Cloud, while lagging in volume, is integrating AI more deeply into its operations. AI drives 36% of Google’s new cloud case studies.
Breakdown of cloud AI engagement
IoT Analytics highlighted the differences in cloud AI engagement relative to overall market share:
- Microsoft: AI engagement reached 45%, surpassing its 29% cloud market share.
- Google: AI engagement reached 17%, almost doubling its 9% market share.
- AWS: With 34% AI engagement, it lagged behind its 37% cloud market share.
Specifically, in genAI, Microsoft’s engagement rate was double its overall market share, while AWS trailed by 21 percentage points, underscoring Microsoft’s growing dominance in this area.
AI is driving investment in cloud infrastructure
Growing demand for AI is forcing hyperscalers to increase spending on infrastructure. Amazon plans $75 billion in capital spending by 2025 to improve AWS and its AI capabilities. Similarly, Microsoft and Google are expanding their AI-focused data centers to support growing workloads.
Global cloud infrastructure spending will reach $84 billion in Q3 2024, up 23% year-on-year, driven by AI investments, according to Synergy Research Group. ABI Research predicts that by 2030, 43% of data centers will be large-scale facilities, up from the current 28% serving AI and other data-intensive applications.
Microsoft’s edge in cloud AI
Microsoft’s dominance in cloud AI and genAI involvement cements its leadership position in the race for AI-based cloud innovation. As the competition between intensifying hyperscalers, Microsoft’s partnerships and strategies make it a key player in shaping the future of cloud computing.
(Photo by Unsplash)
See also: Google Cloud partners with Air France-KLM to transform its data and generative AI strategy
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