Tech giants are reporting growing cloud business as companies around the globe adopt generative AI technology.  

“This business [AI] has real momentum, and the overall opportunity is increasing as customers embrace gen AI,” Google Chief Executive Sundar Pichai said during the company’s third-quarter earnings call on Oct. 29.

Microsoft is seeing continued growth in Azure cloud migration and is selling AI-driven solutions to existing cloud users, CEO Satya Nadella said during the company’s earnings call on Oct. 30. “AI business is on track to surpass an annual revenue run rate of $10 billion next quarter,” he said. 

Amazon CEO Andy Jassy said during the company’s Q3 earnings call on Oct. 30: “It’s much harder to be successful and competitive in generative AI if your data is not in the cloud” due to the need for high computing power and easily accessible data. 

Q3 Cloud Revenue 

Apple launched its much-awaited AI-driven assistant, Apple Intelligence, and expects its cloud revenue to grow on the heels of AI adoption among users, Chief Financial Officer Luca Maestri said during the earnings call on Oct. 31. 

The Cupertino, Calif.-based company reported revenue from its services, including iCloud sales, of $24.9 billion, up 11.6% YoY, according to the company’s 10-K filings. 

Growing AI adoption among existing clients 

Tech giants are continuing to innovate with AI and create multiple product lines for a variety of use cases for their clients. 

Pichai said Google’s AI products are seeing a 30% increase in adoption among its customer base and he expects enterprise adoption of the tech to drive growth in the coming quarters.  

And Amazon’s Jassy said, “In the last 18 months, AWS has released nearly twice as many machine learning and gen AI features as the other leading cloud providers combined” to meet the needs of its customers. 

Amazon’s AI solutions, which include Bedrock and SageMaker, continue to grow their client base, Jassy said. As the price of using AI workloads comes down, more clients will adopt the technology, he said. 

Nearly 70% of Microsoft’s clients in Fortune 500 companies are using Microsoft 365 Copilot for autonomous agents and document processing, among other uses, Nadella said. The adoption of AI will increase as business moves from “legacy apps to AI-first business processes,” he said.

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