Cloud systems with enhanced capabilities, known as Neoclouds, and reasons for their relevance to AI development and processing.
In the rapidly evolving world of artificial intelligence (AI), the demand for high-performance compute resources has never been greater. Enter Neoclouds, a new breed of cloud infrastructure providers that are making waves by offering AI-centric GPU services at more affordable rates.
Neoclouds, such as Nebius Group, CoreWeave, Crusoe, Lambda Labs, Vast.ai, and others, differentiate themselves from traditional hyperscalers like AWS, Google Cloud, and Azure by focusing on optimized GPU availability, flexible pricing, and specialized performance for AI/ML workloads.
One standout player in this space is Nebius Group, a leading European neocloud provider that offers a full-stack AI infrastructure platform. Backed by Nvidia, Nebius has demonstrated explosive growth, with revenues skyrocketing 385% year-over-year to $55.3 million in Q1 2025 and an annualized run rate of $249 million. This growth reflects strong demand for their AI GPU services, and the company is aggressively reinvesting to increase capacity and technology leadership.
Another significant player is CoreWeave, which has recently acquired rival Core Scientific in a $9 billion stock deal. This move consolidates CoreWeave's market positioning and expands its GPU capacity and contracts significantly, illustrating the competitive dynamics where only the largest neoclouds with strong GPU resources are expected to survive and thrive.
Other notable neoclouds like Crusoe, Lambda Labs, and Vast.ai differentiate themselves from traditional hyperscalers by offering more flexible pricing models and specialized GPU availability optimized for AI demands.
The importance of Neoclouds for AI/ML workloads lies in their ability to fill the gap left by traditional hyperscalers. AI workloads rely heavily on GPUs for efficient parallel processing, but GPUs are costly and in short supply. Traditional hyperscalers offer GPU instances, but often at higher prices and with limited flexibility in meeting rapidly growing AI compute demands.
In contrast, Neoclouds focus specifically on AI-centric GPU services, providing competitive pricing, better availability, and infrastructure tailored for AI scalability. This democratizes access to affordable GPUs, lowering the barrier to entry for companies looking to build or scale AI applications.
Moreover, some Neoclouds operate on decentralized models, sourcing compute from geographically diverse data centers or networks of independent operators, providing decentralization and resilience.
The GPU-as-a-Service market, which includes both hyperscalers and neoclouds, is projected to grow at a 36% rate according to Fortune Business Insights. As AI workloads become mainstream across various industries, leading to increased demand for high-performance compute, Neoclouds represent a fresh take on the GPU-as-a-Service model.
In conclusion, Neoclouds like Nebius Group and CoreWeave emerge as leading players offering high-performance GPU-centric AI/ML services at more affordable rates thanks to their focused infrastructure, scale, and strategic investments. Other providers like Crusoe, Lambda Labs, and Vast.ai complement this landscape by offering alternative specialized GPU-oriented compute options tailored for AI workloads.
Data-and-cloud-computing technologies, such as Neoclouds, are revolutionizing the high-performance compute landscape for artificial intelligence (AI) by providing specialized GPU resources at affordable rates. Examples of these neocloud providers include Nebius Group, CoreWeave, and Vast.ai, each offering AI-centric GPU services with optimized availability and flexible pricing models.
