AWS remains the leader, but Microsoft and Google are gaining momentum

AWS remains the leader in cloud infrastructure, generating $30.9B in revenue (+17.5% YoY) and contributing over half of Amazon’s total operating profit ($10.2B). Its growth is fueled by AI demand and cloud migration, maintaining its central role in Amazon’s profitability.

However, Microsoft Azure and Google Cloud are gaining momentum, especially in AI services:

• Azure: $28.99B in revenue (Intelligent Cloud), with standalone Azure revenue surpassing $75B annually (+34% YoY), driven by OpenAI integration and cloud workload growth.

• Google Cloud: $13.6B revenue (+32% YoY), the fastest growth rate among the top three, led by AI model training and enterprise AI adoption.

Industry trends show all three hyperscalers rebounding post-2023 slowdown, with generative AI as the main catalyst. AWS’s operating margin fell from 39.5% to 32.9% due to increased capex and compensation costs—investments Amazon views as vital for AI and infrastructure leadership.

AWS is not falling behind, but the competition is accelerating. Azure is growing faster with strong AI traction, while Google Cloud leads in percentage growth from a smaller base. The cloud wars are intensifying, with all providers scaling aggressively to lead in the AI-driven future.