Big tech combines generative AI with cloud services one after one other

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(Photo = shutterstock)

Generative artificial intelligence (AI) has begun for use as a relief pitcher to inject latest vitality into the cloud service sector, where growth has slowed.

The Wall Street Journal reported on the twenty seventh (local time) that the three major cloud firms, Amazon Web Services (AWS), Microsoft (MS), and Google, introduced generative AI technology one after one other as sales growth within the cloud service sector is predicted to drop to half of last 12 months. reported doing.

Based on the report, the expansion rate of the cloud service market this 12 months is predicted to be 18%, half the extent of last 12 months. The truth is, AWS, the leading company, saw only 20% revenue growth within the fourth quarter of last 12 months. an all-time low.

Microsoft has also been warning investors that its cloud business is slowing. “Enterprise customers are limiting their spending on cloud computing to chop costs throughout the recession,” said CEO Satya Nadella.

Accordingly, these three cloud firms decided that generative AI technology, which has recently been within the limelight, could open a latest era of cloud growth, and started aggressive marketing, similar to providing generative AI as a free service to customers.

(Photo = shutterstock)
(Photo = shutterstock)

They see startups, especially in the sector of generative AI, as key customers going forward. It’s because developing and running generative AI requires massive computing power.

On this regard, enterprise capitalist Andreessen Horowitz estimates that 10 to twenty percent of the revenue from generative AI apps goes to the large three cloud providers.

AWS plans to offer as much as $300,000 of free computing resources to pick firms as a part of a support program for generative AI startups. Google can be planning to offer free credits price as much as $250,000 to latest AI startups.

Google also plans to present developers using the cloud access to the ‘Pathway Language Model’, an AI program that has been used only internally. Google says this system may be used to create applications similar to custom chatbots or web page digesters.

While integrating generative AI across its products, Microsoft is actively promoting that it might probably increase corporate efficiency with generative AI technology through the OpenAI-Azure cloud.

It is usually expanding direct investment in generative AI startups. Microsoft decided to offer $10 billion in latest support for OpenAI, and Google invested $300 million in Antropic, a startup that is taken into account a rival of OpenAI. AWS does indirectly put money into it, but provides access to a spread of generative AI tools within the cloud.

Jeong Byeong-il, member jbi@aitimes.com

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