Microsoft outperforms Amazon and Google in cloud AI

Cloud heavyweights AWS, MicrosoftAzureand Google Cloud Platform (GCP) are positioning themselves to use artificial intelligence as a key driver of the growth of cloud infrastructure.

according to IoT analyticsMicrosoft is becoming the leader in cloud artificial intelligence, especially in the field of genAI, surpassing AWS and Google.

Microsoft leads the way in generative artificial intelligence

Microsoft accounts for 45% of new cloud AI case studies, 62% of which are projects focused on genAI. This success is largely due to its partnership with and acquisition of OpenAI, which has enhanced its market position.

In contrast, AWS excels at traditional artificial intelligence. It captures 15% of new cloud AI case studies, 85% of which focus on non-genAI, demonstrating its strength in traditional AI.

Google Cloud, while lagging behind in numbers, integrates artificial intelligence more deeply into its operations. Artificial intelligence drives 36% of new cloud case studies at Google.

Cloud AI engagement segmentation

IoT analytics Highlighting the differences in cloud AI engagement relative to overall market share:

• Microsoft: Artificial intelligence participation is 45%, exceeding its cloud market share of 29%.
• Google: Artificial intelligence participation reached 17%, almost double its 9% market share.
• AWS: Artificial intelligence participation is 34%, lagging behind its cloud market share of 37%.

Specifically, in genAI, Microsoft’s participation is twice its overall market share, while AWS lags behind by 21 percentage points, underscoring Microsoft’s growing dominance in the space.

Artificial Intelligence drives investment in cloud infrastructure

Growing demand for artificial intelligence is driving hyperscalers to increase infrastructure spending. Amazon plans to invest $75 billion in capital expenditures in 2025 to enhance AWS and its artificial intelligence capabilities. Likewise, Microsoft and Google are expanding their AI-centric data centers to support growing workloads.

According to data from Synergy Research Group, global cloud infrastructure spending reached US$84 billion in the third quarter of 2024, an annual increase of 23% driven by artificial intelligence investment. ABI Research predicts that by 2030, 43% of data centers will be large facilities, up from 28% today, to accommodate artificial intelligence and other data-intensive applications.

Microsoft’s advantages in cloud artificial intelligence

Microsoft’s dominance in cloud AI and genAI engagement solidifies its position as a leader in the race for AI-driven innovation in the cloud. As competition among hyperscale enterprises intensifies, Microsoft’s partnerships and strategies make it a key player in shaping the future of cloud computing.

(photography: Not splashed)

See also: Google Cloud partners with Air France-KLM to transform its data and generative AI strategy

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