Microsoft's core business is software, which is to say that the company faces massive pressure to invest in their own AI capabilities, even at the cost of de-prioritizing cloud customers. That's exactly what happened at Microsoft earlier this year , when the company missed Azure growth projections because they devoted more compute to their internal workloads.

Both the shift to inference and the shift in the nature of inference have been positives for AWS' approach.

Amazon.com Inc. unveiled a suite of logistics services that will let businesses buy its existing freight and distribution offerings as a package, sending shares of rival delivery companies such as FedEx Corp. and United Parcel Service Inc. lower.

Amazon.com Inc. unveiled a suite of logistics services that will let businesses buy its existing freight and distribution offerings as a package, sending shares of rival delivery companies such as FedEx Corp. and United Parcel Service Inc. lower.