We know that the big players pay quite a fortune for their cloud operations. For example, it is said that Netflix pays up to $15m per month to AWS. But in this report, it is likely that Walmart could be Microsoft Azure’s biggest customer with a staggering $580m yearly bill which translates to a whopping $48m per month. I would argue that they could very well be in the top 5 list of the biggest cloud spenders.
Quick Hits
- $580.4 million — Walmart’s Azure Consumed Revenue (ACR) from July 2023 to May 2024
- $61.9 million — single-month peak (November 2023, holiday-traffic surge)
- Leak surfaced after a Build 2025 protest briefly exposed a confidential Teams chat on-screen
- Partnership expansion: Walmart now piloting Azure OpenAI tools for search and fulfilment
At Microsoft’s Build developer conference last week, two former employees disrupted an AI-security presentation to protest the company’s Israel Defense Forces contract. In the scramble, a Teams sidebar flashed on the giant screen, revealing an internal spreadsheet of Walmart’s monthly Azure bill. Journalists captured screenshots; Business Insider later confirmed the totals in a second leaked document .
Why $580 Million Matters
- Top-tier customer
Analysts estimate it places Walmart among Azure’s ten largest single tenants—behind TikTok owner ByteDance but close to Mercedes-Benz and AT&T. - Holiday elasticity
Spend spiked 40 % between August and November 2023, underscoring Azure’s role in Walmart’s Black-Friday traffic management. - AI upsell proof-point
The retailer’s 2024 AI search pilot—built on GPT-4o—is factored into the leaked forecast, signalling a multi-year AI commit likely to push annual spend well past $750 million by FY 2026.
Microsoft vs. AWS in the retail space
- Historical context: Walmart publicly shunned AWS in 2018 to avoid “funding a competitor” (Amazon).
- Azure edge: The retailer’s omnichannel push uses Microsoft’s Cosmos DB and Power Platform for inventory and robotics.
- AWS counter: Amazon just cut S3 prices for “retail independence” clients, courting Walmart competitors like Target, Kroger, and Carrefour.
One might wonder what Walmart is getting for that kind of humongous tab, well here it is;
Azure Service | Use-Case at Walmart | Comment |
---|---|---|
Virtual Machines & Kubernetes | Seasonal scale-out for walmart.com and Sam’s Club apps | 38 % of the leaked bill |
Azure OpenAI Service | GPT-powered product search & call-centre bots | New line-item added Jan 2024 |
Synapse Analytics | Real-time supply-chain insights | Consolidating legacy Teradata DW |
Azure Arc + Stack Edge | In-store edge compute for Scan&Go and shelf cameras | 4,700 US stores by YE 2026 (internal roadmap) |
Well we at TechBooky and other tech players have a a thing or two to say about this.
“Half-billion in 11 months shows Azure finally has a retail whale to rival AWS’s Netflix or Meta spend.”
—Holger Mueller, Constellation Research
“Generative AI is driving a fresh wave of consumption. Retailers will double cloud budgets just to keep up with LLM inference.”
—TechBooky’s opinion
In Spite of the leak, here is what could likely and very likely come next from this revelation;
- Contract renewal — Walmart’s original 2018 MOU expires Q1 2026; insiders expect a ten-year extension that folds in private 5G and Microsoft Copilot for Store Associates.
- Regulatory spotlight — With Azure bills now public, Microsoft may come under SEC scrutiny to disclose more granular cloud revenue segments.
- Competitive shot — Google Cloud is pitching Gemini Vision for Walmart’s computer-vision checkout; outcome could decide whether the retailer remains an exclusive Azure house.
The accidental data drop offers a rare peek into Azure’s cash engine and shows just how aggressively big-box retail is leaning on cloud + AI to fend off Amazon. With $61 million months already on the ledger, Walmart looks set to become Microsoft’s first billion-dollar retail cloud account—and that raises the stakes for every other hyperscaler chasing Fortune-100 spend.
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