Most artificial intelligence (AI) development happens in the cloud, with the help of tech giants like Microsoft (NASDAQ: MSFT) and Amazon (NASDAQ: AMZN). Microsoft Azure and Amazon Web Services (AWS) operate centralized data centers filled with chips from leading suppliers like Nvidia, and they rent the computing power to developers who use it to create AI applications.

Plus, developers can access ready-made large language models on Azure and AWS, including those from leading AI start-ups like OpenAI and Anthropic, to accelerate their progress.

AWS is the largest provider of cloud services and infrastructure in the world, followed by Azure in second place. However, Azure grew its revenue by 29% in the most recent quarter (ended June 30), with eight percentage points attributed to AI alone. AWS only grew its revenue by 19% during the same period, and the gap, while narrowing, has been a consistent theme:

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Source Fool.com