Microsoft surpasses Alphabet in cloud race with OpenAI bet, enterprise focus

Microsoft is outstripping Alphabet in the race to make money from generative artificial intelligence through early bets on OpenAI and focus on big clients, raising worries that the Google parent could lose share in the cloud-computing market.

Cloud spending by businesses preparing to roll out AI features powered a rebound in growth for Microsoft’s Azure platform in its first quarter, lifting the shares of the Windows maker up 3.6 per cent on Wednesday.

But in a sharp contrast, growth at Alphabet’s cloud unit hit a near three-year low as its higher exposure to smaller clients dampened growth, sending the company’s shares tumbling 6 per cent.