Will generative AI disrupt the cloud industry?

A further unknown is whether the generative AI wave will be disruptive enough to upset the balance of power in the cloud industry, which has looked remarkably stable in recent years. At an annualised $100bn, AWS’s revenue is probably twice that of Microsoft’s Azure cloud platform. Google is further behind.

Will AI make a big impact on cloud computing?

Consider, for example, the business rebound that the biggest cloud computing platforms have experienced this year. Last week, reaccelerating growth in the cloud computing divisions at Microsoft and Google fed hopes that AI was starting to make a noticeable impact.

Why are ai start-ups partnering with big tech?

The need for huge amounts of costly computing capacity to develop generative AI has pushed AI start-ups to seek partnerships with the Big Tech groups. Microsoft took an early lead and signed an exclusive deal with start-up OpenAI, now seeking a valuation of $86bn. The tie-up gives Microsoft’s customers access to the technology behind ChatGPT.