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Gen AI Re-Accelerates Future Expansion of the Cloud Market
By Shubhendra Anand , 24 March, 2025
The introduction of generative artificial intelligence in 2024 has ignited a new surge, thereby laying the groundwork for an even more dynamic 2025. The global cloud infrastructure industry is experiencing a significant resurgence in growth, primarily due to the increasing adoption of generative artificial intelligence technologies. Over the past few years, cloud infrastructure services have experienced rapid growth as companies transitioned their IT operations to the cloud. According to Synergy Research, the sales of cloud infrastructure services increased from less than $50 billion in 2017 to $330 billion in 2024.
Reflecting a 22 percent year-over-year gain, industry sales grew to $60 billion in 2024. The explosion of generative artificial intelligence applications and growing demand for AI-driven cloud services help to explain this comeback. John Dinsdale, Chief Analyst at Synergy Research Group, said, "We assess that GenAI has been responsible for at least half of the increase in cloud service revenues since ChatGPT was launched." The rise of AI-specific cloud solutions including GPU-powered solutions and improvements to current cloud services motivated by AI developments has propelled this expansion. 2025 is predicted to see even more dependability on cloud computing infrastructure as companies keep adding artificial intelligence models into their operations.Leading the cloud business with large market shares, Amazon Web Services (AWS) and Microsoft Azure keep. With thirty percent of the total cloud infrastructure income coming from AWS alone, yearly revenue from this provider comes to almost $100 billion. For Amazon, this supremacy has been very profitable; AWS accounts for about 60 percent of its entire operating profit and will generate $40 billion in 2024. Tech behemoths are projected to spend substantially on AI-driven cloud solutions to keep their market share as rivalry becomes fiercer in 2025.
As generative artificial intelligence continues to transform cloud computing, demand for scalable cloud solutions, AI-optimized infrastructure, and high-performance computing (HPC) is predicted to explode in 2025. From manufacturing to banking and healthcare, companies of all kinds are using artificial intelligence to maximize operations, improve customer experiences, and inspire innovation. 2025 is expected to be a historic year for cloud computing as cloud providers increase their AI capabilities and invest in new chipsets; ongoing revenue growth and technical advancements are on tap.
The incorporation of generative AI will remain a major driver of market development as businesses negotiate the changing cloud terrain, therefore guaranteeing that 2025 will be a significant year in the evolution of the cloud computing sector.
Generative AI Re-Accelerates Future Expansion of The Cloud Market
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Shubhendra Anand
Head Research
