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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. The total customer count for Azure’s OpenAI has grown dramatically. All of that usage is creating a massive business. But the story in this quarter’s reports is AI.

AI Search 209
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Predicting Cloud Growth Rates for 2023

Tom Tunguz

Yesterday, Google & Amazon announced earnings which completes the picture. A year ago, AWS, GCP, & Azure averaged 44% annual growth. Google: [GCP] saw slower growth of consumption as customers optimized GCP costs. Google: [We] are pushing Google Cloud to Profitability.

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How Much Should You Expect Your Startup to Slow in 2022?

Tom Tunguz

Larger businesses face more daunting challenges sustaining higher growth rates, so AWS numbers are expected. GCP reported 37% growth & Microsoft 40%. All three businesses reported a decline in their growth rates. On average, these business units recorded a 21% decline in growth rate. Q/Q Growth Rate Change.

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The Health of Cloud Spending in Mid-2022

Tom Tunguz

Today, Microsoft & Google revealed the health of their infrastructure business units. Microsoft Azure. Google Cloud Platform. Microsoft Azure grew 40% y/y, tying the fastest quarterly growth rate in the past 5 quarters. GCP’s data point is less rosy. Amazon Web Services.

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Clouded Judgement 5.3.24 - Hyperscalers Report Q1 + Early Look at Software Reports

Clouded Judgement

We now have results from the three hypersclaers (AWS / Azure / GCP). Quarterly Reports Summary Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months.

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Signs We've Touched the Bottom

Tom Tunguz

Both Google & Microsoft announced growth rates in GCP & Azure that held steady from one quarter to the next. Microsoft’s Azure Open AI customer base grew 4x by count, up from 2500 last quarter : We have great momentum across Azure OpenAI Service. The desire for AI is broad.

Azure 204
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Grey Skies in Cloud Earnings

Tom Tunguz

This week Microsoft, Google/ Alphabet, & Amazon reported their third quarter figures. Microsoft Azure. Google Cloud Platform. Infrastructure revenue growth averaged 33% this quarter, which is astounding considering we’re talking about businesses that sum to more than $50b of revenue per quarter.

Cloud 228