Amazon, Microsoft, and Google reported significant growth in cloud revenue, driven by artificial intelligence and ongoing cloud migrations. Google Cloud generated $11.35 billion in revenue, marking a 35% increase, while Microsoft’s Azure revenue grew by 33%. Amazon Web Services (AWS) reported a 19% year-over-year increase, totaling $27.5 billion.
John Dinsdale, chief analyst at Synergy Research Group, noted that the cloud market has expanded by nearly $16 billion over the past four quarters, compared to $10 billion in the previous year.
Microsoft CEO Satya Nadella highlighted Azure’s increasing market share and its hybrid cloud offerings, with Azure Arc customer numbers up over 80% year-over-year. Microsoft is also investing in new infrastructure across Brazil, Italy, Mexico, and Sweden.
Google CEO Sundar Pichai emphasized the company’s AI capabilities, which are attracting new customers and enhancing existing client engagements. Google Cloud's AI infrastructure and the Vertex platform saw substantial growth, with Gemini API calls increasing nearly 14 times in six months.
Amazon CEO Andy Jassy discussed AWS’s focus on modernizing infrastructure and its investments in AI capabilities, including the upcoming Trainium2 chip, which promises improved price/performance for customers.