Jamin Ball, an analyst from Altimeter Capital, has evaluated that Microsoft’s investment in AI has led to a rapid growth in their Microsoft Azure service. The latest quarter has seen a 30% increase in revenue, surpassing market leader AWS, which only grew by 13% in the same quarter.
Ball estimates that five years ago, Azure’s infrastructure service revenue was only half of what AWS had. However, now it has reached three-fourths of AWS’s revenue.
In the latest earnings announcement, Satya Nadella revealed that Azure has 53,000 organizations using their AI services.
The collaboration with OpenAI has allowed Microsoft to release their Generative AI service ahead of other cloud providers. In contrast, AWS has received criticism for being slow in launching a similar service. Amazon Bedrock, their offering, is scheduled to be released in September 2023.
TLDR: Microsoft’s investment in AI has propelled the growth of their Azure service, outpacing AWS. Azure now holds a significant share of the market and has established itself as a leader in AI services.
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