The differences between CloudFormation and Terraform are noteworthy. CloudFormation is an AWS service designed to provision and manage AWS resources. At the same time, Terraform is an open-source Infrastructure as Code tool that can provision and manage infrastructure across various cloud providers. As such, Terraform provides more flexibility in managing resources but also requires a deeper knowledge base to use effectively. Regarding new AWS services and API support, Terraform resources might be created or updated quicker in Terraform than in CloudFormation.