Deep Dive into Neoclouds: Strategic Intelligence
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Neoclouds are cloud providers focused on renting high-end graphics processing units (GPUs) for artificial intelligence (AI) workloads. They power hyperscalers that build large language models (LLMs) and also serve companies with pressing AI needs (start-ups, research labs, and enterprises). Nvidia is central in this ecosystem, both supplying hardware and investing in neoclouds. Notable neoclouds companies include CoreWeave, Lambda, Nebius, Nscale, and Crusoe.
Scope
Today, more than 100 neoclouds exist worldwide. Around 10 to 15 are operating at a meaningful scale in the US, and their presence is growing across Europe, the Middle East, and Asia.
This report provides an overview of the neocloud theme, including analysis of neoclouds strengths, a comparison between hyperscalers and neoclouds, and an evaluation of likely future scenarios for neocloud providers.
Key Highlights
Neoclouds do not compete with traditional cloud providers. In an environment still defining how AI will scale, neoclouds can serve as valuable partners, acquisition targets, or sources of GPU capacity when the big cloud providers face demand spikes. In addition, this new class of cloud providers is deeply tied to data center operators, making it difficult for neoclouds to compete with hyperscalers, companies that own and control their massive, vertically integrated facilities.
High revenue concentration is one of the main risks for neoclouds. For most neoclouds, a few large customers account for most of their sales, making them highly vulnerable if a major contract is lost. These companies also rely heavily on a limited number of hardware suppliers, such as Nvidia or AMD.
Reasons to Buy
Neoclouds are gaining significant market attention. Though many of these players are small, their potential to scale significantly grows as AI adoption increases. This report will help you understand what neocloud is, who the main players are, and how this disruptive theme will develop.
AMD
Atlantic Crypto
Core Scientific
CoreWeave
Crusoe
Digital Ocean
Fluidstack
Gcore
IBM
Lambda
Meta
Microsoft
Nebius
Nebul
Nscale
Nvidia
OpenAI
Oracle
Runpod
Siam.AI
SoftLayer
Together.ai
Vast.ai
Verda
Vultr
Yotta
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