Hottest AI/Cloud Vendors: #1 Palantir, #2 Google Cloud, #3 Oracle

Bob Evans (0:00)

Hello, my friends. Welcome back to Cloud Wars Minute. Got the latest Cloud Wars Top 10 Growth Chart numbers for you, in which we lay out here the hottest AI and Cloud vendors in the world. And right now, we've got number one, Palantir, number two, Google Cloud, number three, Oracle. Let me run down the full list here, and this is based on their latest quarterly results showing growth rates for that quarter and revenue for that quarter for their Cloud businesses. For Palantir, number one, 93%. Now, it's interesting as this is the 12th straight quarter in which Palantir's growth rate has accelerated. So is it crazy to think if it's been going up and up and up and up and up, and now they're at 93, could they hit triple digits? Who knows? We will see.

Almost $2 billion for their quarterly revenue. Google Cloud up 82% to $24.8 billion. Like Palantir, Google Cloud has been on an upswing for the past few quarters. Oracle's cloud business powered by its Oracle Cloud Infrastructure up 62%, $11.6 billion in total cloud revenue. AWS completing or now topping a very nice return to growth over the last several quarters up 37% more than $42 billion in revenue. In the fifth spot, Microsoft. Interesting to see this comparison here. Microsoft's been growing its cloud business in the range of 25, 26, 27% for the last several quarters. Stayed on that and at this size, $59.3 billion. This is just an extraordinary achievement, but I would point out here that this is the first time in a very long time that AWS has grown more rapidly than Microsoft. ServiceNow, up 24.5% to almost $4 billion in revenue. SAP, 24% growth, $7.2 billion. Got Workday in at 14%, $2.47 billion, so they're at about a $10 billion annualized run rate. Salesforce, 11% growth, but a very big $11.3 billion in revenue. Now, here comes the tricky one. OpenAI is not a publicly traded company, so they don't have clear publicly disclosed details about their financial performance. There's been a lot of talk lately, though, that has said that their annualized run rate is about $70 billion.

And so working on that and the notion that the company said publicly a few months ago that by the end of this year or late this year, they expected their enterprise revenue to make up about half of their total business. So the enterprise business is growing faster to reach that 50% point now, half and half within OpenAI.

And if we take that 70% number, that's about $35 billion for the enterprise business. So approximately $8.7 billion is my estimate or guess for the quarter there. Again, we don't have the formal numbers on that, but I think that feels like it's in the ballpark. Now, a couple of thoughts here. One, always when I do these, we have some people say it's not fair. It's easy for a relatively small company to get a higher growth rate than a company with a big revenue number. Now, I get the basic elementary school math. We're going to move past that and try to think about what some of these numbers mean. First, we see that while models continue to be very important, what's really powering some customer moves here and these big growth numbers is the rise of platforms for AI. I've got a number of the Cloud Wars top 10 companies making it very, very easy now for customers to build their own agents, extend their own applications and do things that a year or two ago would have seemed just unfathomable, could never happen. If we look at another point here at the hyperscalers, it's crazy to think that of the four hyperscalers, you look at two of them that have backlogs or RPO of about a half, a trillion dollars, 500 billion. That is AWS and Google Cloud. But Oracle and Microsoft both have RPOs that are approaching $700 billion. So enormous demand. This is even revenue yet. This is a contracted business that hasn't yet been recognized as revenue. So this is still to come in the future, but it shows incredible demand and it isn't just coming from OpenAI and Anthropic. These are broad based numbers here. I think the applications companies, their continued strong growth rates show that they're pulling together in the minds of customers what agents and applications can do together.

Thanks for being with us here at Cloud Wars Minute. I got a detailed article that goes into a lot more about this coming up on cloudwars.com. I hope you'll check that out. Hope you have a fantastic day.