Jamin Ball, an analyst from Altimeter Capital, has assessed that Microsoft’s investment in AI has led to rapid growth for its Microsoft Azure service, with a 30% increase in revenue in the latest quarter. It has also quickly caught up to market leader AWS, which only grew by 13% in the same quarter.
According to Ball, five years ago, Azure’s revenue from its infrastructure service was only half of what AWS generated. However, it now accounts for three-quarters of AWS’s revenue.
During the latest quarterly earnings announcement, Satya Nadella revealed that Azure has 53,000 organizations as customers for its AI services.
Microsoft’s partnership with OpenAI has allowed them to release their Generative AI service ahead of other cloud providers. In contrast, AWS has been criticized for being slow in offering a similar service, with Amazon Bedrock’s launch set for September 2023.
TLDR: Microsoft Azure’s AI investment has resulted in significant growth, outpacing AWS. Azure’s revenue has increased by 30% in the latest quarter, bringing it to three-quarters of AWS’s revenue. Additionally, Azure has 53,000 organizations as customers for its AI services. Microsoft’s partnership with OpenAI has given it an early advantage in offering Generative AI, while AWS faces criticism for its delayed release of a comparable service.
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