GenAI drives $119B cloud revenue in Q4

As Amazon, Microsoft and Google continue to battle for market share, they now account for approximately two-thirds of enterprise spending on cloud infrastructure in Q4, according to Synergy Research Group. Amazon leads with 28%, Microsoft has 21% and Google takes third at 15%.

Synergy Research Group estimates that quarterly cloud infrastructure service revenues -- including IaaS, PaaS and hosted private cloud services -- were $119.1 billion, with 2025's revenue reaching $419 billion.

"We said that Q3 market numbers were very impressive, but they pale by comparison with Q4. Growth rates like these have not been seen since early 2022, when the market was less than half the size it is today," said John Dinsdale, Chief Analyst at Synergy Research Group.

Dinsdale attributes this growth to AI. Also, during 2022, numerous neocloud companies launched and continue to grow in popularity. For example, CoreWeave -- a cloud infrastructure provider purpose-built for GPU workloads -- is generating over $1.5 billion in quarterly cloud revenue, placing it among the top 10 cloud providers.

"GenAI has simply put the cloud market into overdrive. AI-specific services account for much of the growth since 2022," said Dinsdale. "Neoclouds remain relatively small compared with the leaders, but they too are now contributing meaningful incremental growth."

Amazon Q4 earnings

According to Amazon's fourth-quarter earnings call, AWS segment sales increased 24% year-over-year to $35.6 billion. Additionally, for the year of 2025, AWS segment sales increased 20% year-over-year to $128.7 billion.

The earnings call also focused on the growth of their custom silicon chips. Graviton is used for general cloud compute, and Trainium is for AI-specific workloads.

 "AWS is now a $142 billion annualized run rate business. And our chips business, inclusive of Graviton and Trainium, is now over $10 billion in annual revenue run rate, growing triple-digit percentages year over year," said Andy Jassy, president and CEO of Amazon, on the call.

Microsoft calendar Q4 earnings

Total Microsoft Cloud revenue reached $51.5 billion, up 26% year-over-year. For Microsoft Azure and other cloud services, revenue grew 39%. The Intelligent Cloud segment generated $32.9 billion in revenue, up 29% year-over-year. This growth is driven by infrastructure demand and expanding AI workloads.

AI adoption and products, like Microsoft 365 Copilot, also contributed significantly to the growth. Microsoft 365 Copilot's average number of conversations per user is doubling year-over-year, and its daily active users are increasing 10 times year-over-year.

"We are only at the beginning phases of AI diffusion, and already Microsoft has built an AI business that is larger than some of our biggest franchises," said Satya Nadella, chairman and CEO of Microsoft, on the earnings call. "We are pushing the frontier across our entire AI stack to drive new value for our customers and partners."

Google Q4 earnings

Google Cloud revenue increased 48% to $17.7 billion in Q4, which is attributed to Google Cloud Platform (GCP) across enterprise AI Infrastructure and enterprise AI Solutions, as well as core GCP products. Additionally, it ended 2025 at an annual run rate of over $70 billion.

Sundar Pichai, CEO of Alphabet and Google, during the earnings call stated how they are gaining new customers fast, signing larger customer commitments and deepening relationships with current customers. "The number of deals in 2025 over $1 billion surpassed the previous three years combined."

Gemini 3 Pro, a multimodal AI model, was launched four months ago and has already sold more than 8 million paid seats of Gemini Enterprise, and the Gemini app has over 750 million monthly active users.

"95% of the top 20 and over 80% of the top 100 SaaS companies use Gemini, including sales and Shopify. Gemini is becoming the AI engine for the world's most successful software companies," said Pichai.

Kathleen Casey is the site editor for SearchCloudComputing. She plans and oversees the site, and covers various cloud subjects including infrastructure management, development and security.