According to a Barclays report dated August 28, 2026, cloud providers like AWS, Azure, and Google Cloud Platform capture between $35 and $40 per $100 in AI model revenue, converting this share into operating profits of $10 to $20, representing margins of 35 to 45 percent. Global AI lab revenue is estimated at $7 billion in 2024, $137 billion in 2026, and could reach $690 billion by 2028. Paid inference services saw margins climb from low double digits in 2025 to 50 to 65 percent in 2026. Barclays warns, however, that AI labs may eventually build their own infrastructure, which would threaten the revenue share currently captured by third-party cloud providers.
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