As we pass the halfway point of the year, the number of cloud deals has continued to grow, fuelled largely by an increase in AI workloads.

Cloud providers have been on a spending spree to stay ahead in the GenAI race, so much so, that some have come under fire by the US Federal Trade Commission.

In March, the watchdog announced it would launch a “market inquiry into the investments and partnerships being formed between AI developers and major cloud service providers”.

The flurry of cloud and AI deals has come under fire for their possible circular nature. By investing in AI startups, some watchdogs have accused the cloud companies of funnelling cash back into their cloud business as revenue.

The US saw a decrease in the value of cloud deals in 2023, following an industry investment peak in 2021.

According to GlobalData's deal database, the value of deals in 2023 totalled $19.1bn. This marked a significant decrease from 2021 when deals totalled $54bn.

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According to GlobalData forecasts, the total cloud computing market will be worth $1.4trn by 2027, having grown at a compound annual growth rate of 17.1% from $638.6bn in 2022.

Here are the five highest-valued cloud deals in 2024, so far.

Amazon invests $2.75bn in Anthropic

On 27 March, Amazon completed its additional $2.75bn investment in Anthropic, completing the deal it made in 2023 to back the AI startup – following Microsoft's multibillion-dollar deal with OpenAI.

As part of the deal, Anthropic agreed to use Amazon Web Services (AWS) data centres to power some of its operations, as well as Amazon's custom chips.

Anthropic confirmed it was using AWS as its primary cloud provider for mission-critical workloads, future foundation model development, and safety research. 

Anthropic has raised around $7.4bn over the past year. 

“GenAI is poised to be the most transformational technology of our time, and we believe our strategic collaboration with Anthropic will further improve our customers’ experiences, and look forward to what’s next,” said Swami Sivasubramanian, vice president of data and AI at AWS cloud provider.

Cox Enterprises acquires majority stake in OpenGov, valuing it at $1.8bn

On 27 February, California headquartered OpenGov, a government technology company that offers cloud software for the public sector received majority investment, valuing it at $1.8bn, from long-time partner Cox Enterprises.

OpenGov said the investment will help make long-term strategic decisions that will benefit customers for decades to come.

Nearly 1,900 customers in all 50 states rely on OpenGov's products for budgeting, accounting, procurement and asset management. One in three people in the US now benefit from OpenGov software, according to the company.

Cox and OpenGov share similar missions and values, and this is the primary driver of the partnership.

"We started this company to power more effective and accountable government. We've grown thanks to outsized investments in engineering and customer success and because of an extraordinary team aligned on values, hard work, expertise, and passion," said Zac Bookman, co-founder and CEO of OpenGov.

"With this investment, one of the largest in GovTech history, we intend to accelerate product development, advance our mission, and improve communities for generations," Bookman said.

Wiz acquires Gem Security for $350m

On 16 April, Wiz acquired Gem Security to add improved cloud detection and response to its arsenal.

The acquisition marked Wiz's largest to date, with the company acquiring Israeli startup Raftt, which developed a cloud-based platform for creating. sharing development environments in December 2023.

Gem Security has developed a purpose-built CDR platform that shortens the time to detect, investigate and contain cloud-native threats.

The platform centralises real-time visibility into multi-cloud environments, as well as provides automated incident timelining to understand the root causes of a cloud breach.

Valtech acquires Kin and Carta (Kin + Carta) for $298.6m

On 29 April, Valtech, a UK-based business transformation company, completed its acquisition of the digital transformation consultancy Kin and Carta.

The company said the investment will support them on their mission to help Fortune 500 and household-name brands looking to meet changing consumer expectations, build strong technology foundations, and drive sustainable growth through world-class experiences.

Sign In Solutions acquires SmartSpace Software for $33.02m

On 2 May, Sign in Solutions, a leading global provider of cloud-based visitor management solutions, completed its take-private acquisition of SmartSpace Software PLC.

SmartSpace is a rapidly growing provider of visitor management, meeting room booking and desk management software that optimises safety, security, space utilisation and compliance.

The acquisition, which is Sign In Solutions' seventh since August 2021, marks a is another milestone in the the company's global expansion strategy.

The companies said that by joining forces they will be able to deliver a comprehensive set of visitor management capabilities that will enhance the overall value, user experience and operational efficiency for over 18,500 paying customers 90 countries worldwide.