Generative AI boosts cloud revenue for Microsoft, Google

Microsoft and Google, who saw cloud revenue slow in recent quarters, are reporting a resurgence of growth due to the proliferation of generative AI (genAI).

Both companies on Tuesday reported revenue numbers for the final quarter of 2023.

“Google Cloud has left behind years of quarterly losses and now accounts for 10% of Alphabet’s revenue, as it uses the AI momentum to reintroduce itself to enterprise IT leaders as a partner,” said Lee Sustar, principal analyst at Forrester.

“The notable gain in Microsoft Cloud revenues, which include both Azure and SaaS offerings like Microsoft 365 and Dynamics 365, show that the AI boom is giving a significant boost to cloud providers’ bottom line,” Sustar said.

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Source:: Computerworld