"They are a group of organisations that have come out of nowhere over the past few years, with the aim of providing large-scale graphics processing unit (GPU) as a service compute. There's no single neocloud model. Some neoclouds operate their own datacentres, while others install their precious GPU capacity in colocation facilities."
"Many have clear roots in the cryptocurrency world, which pioneered the operation of large amounts of GPUs, including novel approaches to liquid cooling. But their original customers were organisations looking to train large language models (LLMs) and other foundational AI platforms, which means, ironically, one major customer base for neoclouds is the hyperscalers' themselves."
"They're filling an absolute, real need, they're able to speculate and build, and they are getting the support of their key suppliers and customers. Although arguably that's true of the datacentre market as a whole, as players grapple for very real-world resources such as land, power and silicon."
Neoclouds represent a new category of cloud service providers focused on delivering GPU-as-a-service compute capacity, capturing significant investment and market attention despite hyperscalers controlling two-thirds of the cloud market. These organizations operate through diverse models—some managing their own datacenters while others utilize colocation facilities. Many originated from cryptocurrency operations, leveraging expertise in large-scale GPU management and liquid cooling technologies. Their primary customers include organizations training large language models and foundational AI platforms, with hyperscalers themselves representing a major customer base. Industry analysts note neoclouds address genuine infrastructure needs around land, power, and silicon availability, supported by GPU suppliers and customers seeking alternatives to traditional cloud providers.
Read at ComputerWeekly.com
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