Amazon Web Services (AWS) is experiencing a significant challenge to its long-standing dominance in the cloud computing sector. A recent analysis from TechRadar, published on November 21, 2025, indicates that AWS’s market share has declined as competitors Microsoft Azure and Google Cloud gain momentum, driven largely by increasing demands for artificial intelligence (AI) services. As of the first quarter of 2025, AWS held a 29% market share, while Azure and Google Cloud captured 22% and 12%, respectively. Microsoft’s Azure has now gained a full percentage point, highlighting a narrowing gap in the competitive landscape.
The global cloud infrastructure market reached an estimated $107 billion in the third quarter of 2025, according to Synergy Research Group, with a quarterly growth of $7.6 billion. While AWS, Microsoft, and Google Cloud collectively control 62% of the market, AWS has seen its growth trajectory slow, in contrast to its rivals, which have maintained steady performance. Cloud Wars, in a report dated November 10, terms AWS the “King of the Cloud,” but notes that its lead is faltering amid the AI revolution.
AI Demand Reshapes Competitive Dynamics
The rise of AI workloads is a central factor reshaping the competitive dynamics within the cloud sector. Jamin Ball’s updates on X indicate that AWS is projected to achieve a run rate of approximately $117 billion, representing a year-on-year growth of 17% in Q1 2025. In comparison, Azure is on track for around $77 billion at 35% growth, while Google Cloud anticipates about $49 billion at 28%. By the second quarter of 2025, Azure’s revenue surged to around $86 billion, reflecting a remarkable 39% growth, and Google Cloud’s revenue reached approximately $54 billion, growing at 32%.
According to Cloud Wars, Google Cloud’s growth rate of 32% in Q3 surpassed AWS’s 20% and Microsoft’s growth, indicating a shift in the business landscape despite differing total revenues. Oracle has emerged as a potential contender, with both it and Google Cloud showing notable growth in remaining performance obligations (RPO), which could contribute to future market dynamics.
Quarterly Earnings Reflect Competitive Pressures
The earnings report for Q2 2025 underscores the competitive pressures facing AWS. While AWS reported solid revenue figures, it struggled to match the AI-driven growth of its competitors. Analysis by TechPulse Daily echoes the sentiment expressed by TechRadar, noting that “AWS has long been number one, but its position may be slowly slipping as Microsoft guns for the top spot.”
Google’s impressive rise has drawn attention, with Cloud Wars reporting in September that it achieved the highest growth rate in Q2 at 32%. Meanwhile, Oracle and Microsoft continue to show strength in the market. Aethir’s commentary highlights that centralized clouds like AWS may face challenges in meeting the high demand for graphics processing units (GPUs) essential for AI applications, presenting opportunities for disruptors to challenge the status quo.
AWS is responding with initiatives like Bedrock and custom chips, but Cloud Wars has described its 20% growth in Q3 as insufficient against the backlogs of its peers. Microsoft is leveraging its partnership with OpenAI to enhance Azure offerings, which is reportedly growing at 26% year-on-year. Google is focusing on its Tensor Processing Units (TPUs) and the Gemini platform to further its market position.
The sentiment in the industry is palpable, with reactions on X capturing the competitive nature of the cloud wars. One post remarked, “Google Cloud ate their market with projected revenue of over $60 billion… insane catching up.”
Future commitments will be critical in determining the leaders in this evolving landscape. Cloud Wars reports that Oracle and Google are surpassing AWS in RPO, focusing on booked AI deals rather than past revenues. The shakeup in Q2 2025 saw AWS losing ground, as noted previously.
Additionally, instances of outages—like the 15-hour downtime in October that impacted access to Roblox—highlight the reliability risks AWS faces in a market where downtime can result in substantial financial losses.
Geopolitical and regulatory factors also loom large over hyperscale cloud providers. Global tensions are affecting companies like Alibaba, while U.S. giants navigate emerging regulations concerning AI technologies. The Cloud Institute’s historical analysis frames the ongoing competition, noting that AWS pioneered the cloud market, but Azure’s enterprise entrenchment and Google’s data handling capabilities are significant challenges.
TechRadar concludes that while AWS remains popular, the competitive landscape is shifting rapidly. With capital expenditures in AI technology soaring, the throne of cloud computing is increasingly precarious. Industry observers are keenly anticipating Q4 earnings reports for indications of which companies may emerge as the new leaders in this dynamic sector.
