With OpenAI transitioning to a for-profit model and Microsoft Corporation (MSFT, Financial) unveiling ambitious plans to compete with Apachewhich now boasts a market capitalization of $3 trillionboth companies are undergoing significant structural changes. These developments coincide with Bloomberg Intelligence projections, which estimate the generative AI market will expand at a compound annual growth rate (CAGR) of 42%, reaching $1.3 trillion by 2032, up from $40 billion in 2022. The resulting rapid growth can be attributed to exploding demand for AI applications particularly in cloud infrastructure, digital advertising, and focused software. According to the report, generative AI will make up 10 percent of global IT spending by 2032, with IT infrastructure service, AI servers, and software rated as the top revenue streams. Microsoft, Nvidia, and Google are all giants that are well-placed to exploit this market shift as enterprises move workloads to the cloud.

Full report : By transitioning to for profit model, Microsoft and OpenAI are poised to tap into the $1.3 trillion artificial generative intelligence market by 2032.