Cloud heavyweights AWS, Microsoft Azure, and Google Cloud Platform (GCP) are positioning themselves to use AI as a key driver of cloud infrastructure growth.
According to IoT Analytics, Microsoft is emerging as a cloud AI leader, particularly in genAI, passing both AWS and Google.
Microsoft leads in generative AI
Microsoft accounted for 45% of new cloud AI case studies, including 62% of genAI-focused projects. The success is largely due to its collaboration with and acquisition of OpenAI, which has improved its market position.
AWS, by contrast, excels in traditional AI. It captured 15% of new cloud AI case studies, with 85% focused on non-genAI, showcasing its strength in legacy AI.
Google Cloud, though trailing in volume, integrates AI more deeply into its operations. AI drives 36% of Google’s new cloud case studies.
Cloud AI engagement breakdown
IoT Analytics highlighted disparities in cloud AI engagement relative to overall market share:
- Microsoft: AI engagement stood at 45%, exceeding its 29% cloud market share.
- Google: AI engagement reached 17%, almost doubling its 9% market share.
- AWS: At 34%, AI engagement lagged behind its 37% cloud market share.
In genAI specifically, 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 drives investment in cloud infrastructure
The rising demand for AI is prompting hyperscalers to ramp up infrastructure spending. Amazon plans $75 billion in capital expenditures for 2025 to enhance AWS and its AI capabilities. Similarly, Microsoft and Google are expanding their AI-focused data centres to support growing workloads.
Global cloud infrastructure spending reached $84 billion in Q3 2024, a 23% year-over-year increase fueled 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%, to accommodate AI and other data-intensive applications.
Microsoft’s edge in cloud AI
Microsoft’s dominance in cloud AI and genAI engagement cements its position as a leader in the race for AI-powered cloud innovation. As competition among hyperscalers intensifies, Microsoft’s partnerships and strategy 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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