The Forbes Cloud 100 list for 2023 has been released, revealing the top players in the cloud industry amid a year of market pullback and reshuffling. The list, which is compiled in collaboration with Bessemer Venture Partners, ranks the best and brightest private cloud companies based on factors such as growth, valuation, culture, and reputation.
AI Leads The Way For Newcomers And Rising Stars
One of the most notable trends in this year’s list is the prominence of artificial intelligence (AI) as a key driver of innovation and disruption in the cloud sector. Out of the 16 newcomers to the list, many have benefited from the boom in AI, especially in the field of natural language processing (NLP).
The No. 1 spot on the list goes to OpenAI, a research organization that aims to create artificial general intelligence (AGI) that can benefit humanity. OpenAI has been at the forefront of developing large language models, such as ChatGPT and Codex, that can generate natural and coherent text for various applications. OpenAI also offers an API that allows developers to access its models and create their own AI-powered products.
Another newcomer that is making waves in the NLP space is Anthropic, which ranks at No. 73. Anthropic is a research company that focuses on building scalable, interpretable, and robust AI systems. Anthropic’s vision is to create AI that can align with human values and preferences, and that can be trusted and understood by its users.
Hugging Face, which ranks at No. 98, is also a new entrant that leverages NLP to create conversational agents and chatbots. Hugging Face provides a platform that enables developers to build, train, and deploy their own NLP models using state-of-the-art techniques and tools. Hugging Face also hosts a large collection of pre-trained models and datasets that can be used for various NLP tasks.
Other newcomers that are using AI to enhance their cloud offerings include Abnormal Security (No. 80), which uses AI to detect and stop email-based cyberattacks; DeepL (No. 100), which uses AI to provide fast and accurate translations; and Scale AI (No. 21), which uses AI to provide high-quality data annotation services.
Some of the existing companies on the list have also risen significantly in their rankings due to their AI capabilities. For example, DataRobot (No. 9), which provides an automated machine learning platform; UiPath (No. 10), which provides a robotic process automation platform; and Databricks (No. 12), which provides a unified data analytics platform; have all climbed up by more than 30 spots from last year.
Market Pullback And Uncertainty Affect Valuations And Growth
Another trend that is evident in this year’s list is the impact of the market pullback and uncertainty on the valuations and growth of the cloud companies. Compared to last year, when every company on the list increased their headcount, this year has seen some companies reduce their workforce or slow down their hiring plans.
One of the reasons for this slowdown is the lack of IPO activity among the cloud companies. While last year saw 11 companies graduate from the list by going public, this year has seen none so far. This is partly due to the market volatility and regulatory hurdles that have deterred many cloud companies from testing the waters.
Another reason is the increased competition and consolidation in the cloud industry, which has made it harder for some companies to maintain their edge or differentiate themselves from others. For instance, Figma, which ranked at No. 14 last year, is no longer eligible for this year’s list due to its pending $20 billion acquisition by Adobe.
Some of the companies that have fallen significantly in their rankings include Snowflake (No. 8), which dropped by 31 spots from last year; Stripe (No. 13), which dropped by 32 spots; and Slack (No. 15), which dropped by 33 spots. These companies have faced challenges such as slowing growth, increasing competition, or declining valuation.
However, not all cloud companies have been affected negatively by the market conditions. Some have managed to thrive and grow despite the headwinds, such as Shopify (No. 2), which rose by 19 spots from last year; Zoom (No. 3), which rose by 21 spots; and Canva (No. 4), which rose by 24 spots. These companies have leveraged their strong product-market fit, customer loyalty, and innovation to stay ahead of the curve.
The Cloud Industry Remains Resilient And Dynamic
Despite the challenges and changes that have occurred in the past year, the cloud industry remains resilient and dynamic, as evidenced by the diversity and quality of the companies on the list. The cloud industry is also evolving rapidly, as new technologies such as AI are reshaping the landscape and creating new opportunities and challenges.
The companies on the list represent the best and brightest of the cloud industry, and they are poised to continue to lead the way in the future. As Mary D’Onofrio, a partner at Bessemer Venture Partners, said, “The Cloud 100 represents the companies that are not only shaping the cloud industry today, but also creating the next wave of cloud innovation for tomorrow.”