Microsoft’s cloud business experienced significant growth thanks to artificial intelligence

Third quarter earnings results are out for most of the tech giants. In the field of cloud computing, Microsoft reported 29% growth in its Azure business. This growth is faster than Google Cloud’s 22% growth and more than double the 12% growth rate of Amazon Web Services, AWS.

While Amazon’s AWS business still has the lion’s share of the cloud computing services market, one reason it may be attracting customers to Microsoft is that companies want to run their AI models on Azure. Currently, Microsoft provides the processing infrastructure for the popular chatbot ChatGPT and other OpenAI products.

Almost 3% of Azure’s growth is due to AI services; Of course, the Redmonds predicted this number to be 2%. The growth rate of Azure exceeded 26% in the third quarter of this year; While Google’s growth decreased in the same period of time, and the performance of Amazon’s cloud computing service was also the same as the growth of the second quarter.

Sundar Pichai“Now more than half of all funded artificial intelligence startups are customers of Google’s cloud services,” Alphabet’s CEO said of his company’s cloud computing profitability.

Andy Jesse“We were surprised at how fast generative AI is growing,” Amazon CEO and former head of AWS told analysts. “This technology can generate a full article or advertising text or email text with a multi-word text request.”

Amazon is behind Microsoft in providing tools based on artificial intelligence. Amazon’s Bedrock service became available in September; While Microsoft’s Azure OpenAI was publicly released in December last year.

Another major competitor in cloud computing is Oracle, which reported 66% growth in the third quarter of this year, which led to a 76% increase in overall revenue for the same period.