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All issuesVolume 328, Issue 1IT NewsCxO

CIOs Rethink Public Cloud As AI Strategies Mature

CIO, Tuesday, July 1st, 2025

Concerned about cost and data privacy, IT leaders increasingly see private cloud or on-prem as the better alternative for AI once workloads stabilize and experimentation is done.

CIOs have begun to rethink their reliance on the public cloud for AI and other workloads, with resurgent interest in private cloud and on-premises environments accelerating.

While the public cloud provides the flexibility to spin up large numbers of GPUs for AI experimentation, CIOs are looking to private cloud or on-premises environments as their AI strategies mature, and settle into predictable AI workloads, to limit spending and protect data privacy, says Greg Whalen, CTO of data observability firm Prove AI.

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