Neocloud

A neocloud is a new generation of cloud provider focused almost exclusively on GPU compute for AI, in contrast to hyperscalers' broad service catalogs. Leading examples include CoreWeave (which went public in 2025), Lambda, Nebius, Crusoe, and Together AI. Neoclouds compete on price — commonly undercutting hyperscaler GPU rates by 50-70% — plus faster access to the latest NVIDIA hardware, bare-metal performance, and AI-tuned networking and storage. Their business model is capital-intensive: they raise debt secured against GPU fleets and customer contracts, and lease large blocks of powered data center capacity rather than owning many facilities, making them major wholesale colocation tenants. Risks include customer concentration in a few large AI labs, GPU depreciation, and exposure to hyperscalers' own capacity build-outs — but they have become a structural part of AI infrastructure supply.