Will the mass acceptance and short innovation cycles lead to more Cloud services demand? If so, do we have the capacity to handle this increased demand?
The bigger concerns are trying to figure it all out.
- Microsoft, Google, and Amazon are looking to revive their cloud computing businesses and boost sales by leveraging generative AI tools.
- These tech giants are using the potential of new generative AI at the forefront of their sales pitches to capitalize on the growing interest in applications like chatbots, which can draft memos and perform tasks with a high degree of sophistication.
- By offering free initial access to their services and investing in AI research, these companies are trying to entice startups and developers to use their cloud services to create customized chatbots and other tools.
Microsoft, Google, and Amazon are looking to revitalize sales in their cloud computing businesses using generative artificial intelligence (AI) tools. The three largest cloud companies have put the potential of new, so-called generative AI at the center of their sales pitches to capitalize on the explosion in interest in applications like the viral chatbot ChatGPT. The chatbot was unveiled in November by OpenAI, a startup in which Microsoft has invested billions of dollars and has impressed users with its ability to perform functions like drafting memos and producing computer code at near-human levels of sophistication.
The generative AI push is happening as companies are dealing with sharply slowing growth in the cloud-computing businesses that have been major growth drivers—and, for Amazon and Microsoft, profit centers. Analysts are expecting growth in combined cloud revenue for the big three companies to be 18% this year. That is down by almost half from the growth they had last year. Amazon Web Services, the largest cloud provider, reported sales growth of 20% last quarter, its lowest on record. Amazon.com said earlier this month that it would be laying off 9,000 workers across the company and highlighted its cloud computing division as a target of the cuts.
Google said this month that it would sell access to one of its largest AI programs, the Pathways Language Model, to software developers using the company’s cloud services. Its customers will be able to use it to create things like customized chatbots or tools for summarizing web pages. Both Microsoft and Google have also said they are injecting the chatbot technology into their office productivity software programs like Microsoft Word and Google Docs.
The providers are trying to entice startups by giving them a free initial taste of their services. Google has more than doubled the number of free credits it gives to new AI startup customers, now covering up to $250,000 in spending for their first year. Amazon plans to offer some AI startups up to $300,000 of free computing resources for signing up to its cloud as part of a new program for generative AI startups.
Anthropic, a rival of OpenAI that also released a new AI model earlier this month, received a more than $300 million investment from Google this year and agreed to make the company’s cloud unit its preferred infrastructure provider. The research company has also signed a multiyear agreement to spend about $900 million on Google cloud services, said people familiar with the matter.
Still, some companies are skeptical of the pitch.
Instead of relying exclusively on outside providers, the AI startup Generally Intelligent has begun purchasing its own graphics chips to power its research. The company has also developed an internal tool that can distribute work to the cheapest cloud service at any time. However, early signs indicate that the AI boom is helping the cloud business. Oracle has reported that AI tools contributed to a strong performance last quarter, and Chairman Larry Ellison has noted there is more demand for AI processing than there is available capacity.
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Title: Tech Giants Turn to Generative AI to Boost Cloud Sales
Tweet: Microsoft, Google, and Amazon are using generative AI to drive sales in their cloud computing businesses, centered around applications like ChatGPT, as growth rates slow. #cloudcomputing #generativeAI #ChatGPT
Keyword list: cloud computing, generative AI, ChatGPT, Microsoft, Google, Amazon, revenue growth, startups, AI tools
Introductory paragraph: Microsoft, Google, and Amazon are betting big on generative artificial intelligence (AI) to spur sales in their cloud computing businesses. As growth rates have slowed, the three major cloud companies are touting the potential of generative AI, particularly as it pertains to popular applications like ChatGPT, to attract new customers and keep existing ones. The companies are targeting startups in particular, offering free initial services to entice new customers. While some are skeptical of the pitch, early signs indicate that the AI boom is helping cloud business growth, particularly in the case of Oracle, where AI tools have contributed to strong performance.
One song that matches the theme of using generative AI to revitalize sales in the cloud computing industry is "Electricity" by Silk City & Dua Lipa. The song has a futuristic feel to it and the lyrics talk about the power of electricity and how it can bring people together. In the context of the article, electricity can represent the power of generative AI to bring together companies and startups to boost sales in the cloud computing industry. The line "I need that electric love" could also represent the need for companies to embrace the power of generative AI to stay competitive in the market. The image prompt could be a futuristic cityscape with electric lights and a cloud of data hovering over it, representing the intersection of technology and business.
Search question: What are Microsoft, Google, and Amazon doing to revitalize sales in their cloud computing businesses, and how are they using generative AI to achieve this goal?
Image prompt: A futuristic cityscape with electric lights and a cloud of data hovering over it, representing the intersection of technology and business.
Inspiration: WSJ
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