GenAI has sent the cloud market ‘into overdrive’

According to Synergy’s latest numbers, in Q4 the cloud market jumped by 30% and clocked $119 billion in revenues, propelled by an insatiable hunger for all things generative AI.

Q4 enterprise spending on cloud infrastructure services jumped by almost $12 billion from the previous quarter, and by $29 billion from Q4 2024. Synergy says the scale of these increments “far surpasses anything previously seen in this market” – which is saying something considering previous bean counting hasn’t exactly painted a picture of cautious spending in the area. 

The 2025 full-year market reached $419 billion, and with the caveat of some major currency fluctuations over the period, Synergy puts this at a growth of 30% from the YoY. This makes it the ninth consecutive quarter of accelerating YoY growth and the highest growth rate the market has seen in more than three years, and GenAI is “clearly the primary driver of these changing market dynamics,” states the report. 

The usual fat cats are raking the most in from this – Amazon was on top with 28% of worldwide market share, and Microsoft and Google continue to clock substantially higher growth rates with 21%, and 14% respectively.

The best performing amongst the rest were CoreWeave, OpenAI, Oracle, Crusoe, and Nebius. From a “virtual standing start” two years ago, CoreWeave is now generating more than $1.5 billion in quarterly cloud revenue and has joined the top ten cloud providers thanks to its AI- and GPU-focused services, says the report.

Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) were $119.1 billion, with full-year 2025 revenues reaching $419 billion. 

Public IaaS and PaaS services account for the bulk of this, and those grew by 34% in Q4, while “the dominance of the major cloud providers is even more pronounced” in public cloud, where the top three account for 68% of the market.