“Commercializing new technologies doesn’t happen overnight,” said Alex Smith, vice president at Canalys. “The future of cloud computing remains bright. With transformative tools like AI, major vendors will invest out of fear of being left behind. AI relies on massive processing and storage capabilities, and hyperscalers expect AI-based services to be the next compelling reason for customers to move to the cloud.”

In addition to launching new AI products and solutions, hyperscalers are increasing their efforts to strengthen their AI partner ecosystems. This quarter, major vendors are placing a special emphasis on nurturing AI startups. Notable initiatives include AWS’ Generative AI Accelerator and Google Cloud’s Google for Startups Accelerator, both of which aim to attract AI startups and drive innovation within the industry.

“Startups bring new perspectives, agility and expertise, providing hyperscalers with opportunities to enter emerging markets, fill technology gaps and attract new talent,” said Yi Zhang, an analyst at the company. “By supporting startups, hyperscalers ensure that even the smallest companies can contribute to and benefit from the rapid advancement of AI technology. Ultimately, they drive growth, strengthen their ecosystems and maintain their competitive advantage in the industry.”