Microsoft's cloud experienced a greater increase in growth for the third quarter, while Google's growth rate decreased. Microsoft indicated that there was a marked rise in the demand for AI (Artificial Intelligence) utilities, even with certain patrons concentrating on cost-saving ventures. Amazon Web Services was the cloud leader with the lowest rate of growth.
Microsoft is showing impressive growth in the high-stakes cloud computing space, advancing at a rate faster than its top competitors. Its third-quarter results revealed that its Azure cloud platform has experienced 29% growth, outpacing Google Cloud's 22% and more than double Amazon Web Services' 12%. While AWS still retains its overall market share, Microsoft has successfully attracted business due to its provision of computing power for popular AI powered chatbot ChatGPT and other AI products from OpenAI. CEO Satya Nadella revealed that part of Azure's growth was attributed to AI projects, a rate higher than the expected 2 points. This growth rate accelerated from the prior quarter, while Google decelerated and AWS was relatively unchanged. Analysts from Bernstein Research recognize Microsoft's potential to exceed AWS as an important hyperscale provider, based on its higher capital expenditures. The AI aspect of cloud computing has been emphasised by the tech giants - Google CEO Sundar Pichai reported that over half of all funded AI startups are Google Cloud customers; Amazon CEO Andy Jassy said the company's generative AI business is growing extremely fast. While Amazon was later in releasing its Bedrock service, they're now catching up by contracting companies from Adidas to United Airlines to build generative AI apps on AWS. However, Oracle is emerging as a challenger in the cloud market, reporting 66% growth in its August quarter. Despite this, the cloud giants still must adapt to cost-saving initiatives from their customers - Amazon's finance chief Brian Olsavsky has noticed a slowdown in cloud cost optimisations. Microsoft appears to be stronger in taking market share against Amazon, according to Jefferies' Brent Thill.
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