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AI Reaccelerating Cloud Growth

Tom Tunguz

This growth is fueled by AI workloads. “Because of our overall differentiation, more than 18,000 organizations now use Azure OpenAI service, including new-to-Azure customers.” ” “Higher-than-expected AI consumption contributed to revenue growth in Azure.

AI Search 284
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Standard Issue AI

Tom Tunguz

“For some companies, [AI is] going to be standard issue like a PC.” Calendar Quarter Azure OpenAI Orgs, k CoPilot Users, m Power Platform Orgs, k 1/1/24 53 1.3 Microsoft’s document database, Cosmos, grew 42% annually, driven by AI. ” The data point suggests AI workloads could be a massive boon for Mongo.

AI 188
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What Happens When AI Performance Asymptotes?

Tom Tunguz

In the past, the bigger the AI model, the better the performance. This is a chart of many recent AI models’ performance according to a broadly accepted benchmark called MMLU. 1 MMLU measures the performance of an AI model compared to a high school student. OpenAI Model Release Date Parameters, B MMLU GPT2 2/14/19 1.5

AI 193
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Microsoft's Billion Dollar AI Business

Tom Tunguz

Google Cloud Platform (GCP) & Microsoft Azure had strong quarters with about 28% annual revenue growth each. But the story in this quarter’s reports is AI. The total customer count for Azure’s OpenAI has grown dramatically. All of that usage is creating a massive business. 1 percentage point of growth on a $28.5b

AI Search 198
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Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today

Clouded Judgement

This is why the consumption players (Snowflake, Mongo, Confluent, Azure, AWS, etc) so more variability in the macro slowdown. This brings me to AI (everything leads to AI these days…). When it comes to AI there is now another BIG culprit in misused ARR which I’m calling ERR (we use this term internally).

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The 4 Questions Startups Should Ask Themselves about Building with Generative AI

Tom Tunguz

There are 4 questions a startup should ask themselves about building a startup that uses generative AI. The narrative is : AI is a massive platform change that Goldman Sachs projects will increase GDP 300x more than the PC. There are 4 questions startups should ask themselves about building with generative AI. The video is here.

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Clouded Judgement 10.27.23 - Cloud Giants Report Q3 '23

Clouded Judgement

Subscribe now Cloud Giants Report Q3 ‘23 Not a great signal for software this week from the Cloud Giants (AWS, Azure and Google Cloud)…After Q2 (3 months ago), the tone from the Cloud Giants around optimizations was largely: optimizations have started to ease, and net new workloads have picked up. Staggering scale already.