Creative Strategies CEO and principal analyst Ben Bajarin joins Asking for a Trend to discuss the increased artificial intelligence (AI) capital expenditure investments across tech giants, particularly in their cloud businesses.
Bajarin notes that while AI drives "part of" the increased spending on the cloud, "we forget that there is a lot of general-purpose cloud that is still out there." He emphasizes that traditional cloud services continue to show strength as companies work to transition enterprises to cloud platforms.
Regarding AI spending, Bajarin explains that much of the growth comes from organizations training and deploying pilot projects, but "they’re deploying those to a small fraction of their enterprise."
Bajarin points out that AI cloud projects are still in the early stages, and he expects to see outperformance trends emerging in the second half of 2025.
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