Big-ticket scalers turn to AI as cloud spending grows

“Commercialization of new technologies doesn’t happen overnight,” said Alex Smith, Vice President, Canalys. “The future of cloud computing remains bright. In the face of transformational tools like AI, major vendors will invest for fear of being left behind. AI relies on massive scale of processing and storage capacity, and scale-up companies expect AI-based services to become the next compelling reason for customers to move to the cloud.”

In addition to introducing new AI products and solutions, hyperscalers are ramping up efforts to strengthen their AI partner ecosystems. This quarter, major vendors are putting a special focus on supporting AI startups. Notable initiatives include AWS’s Generative AI Accelerator and Google Cloud’s Google for Startups Accelerator, both aimed at attracting AI startups and driving innovation in the industry.

“Startups bring fresh perspectives, agility, and expertise, providing hyperscalers with the ability to enter emerging markets, address technology gaps, and acquire new talent,” said Yi Zhang, an analyst at the firm. “By supporting startups, hyperscalers ensure that even the smallest companies can contribute to and benefit from rapid advances in AI technology, ultimately driving growth, strengthening their ecosystems, and maintaining a competitive edge in their industry.”