Intelligence Update
Neoclouds: AI’s shock absorbers
With booming interest in generative AI, a new breed of cloud providers — known as neoclouds — has emerged. Neoclouds are the broker-dealers of AI infrastructure, supplying access to large clusters of GPUs to enterprises and hyperscalers looking to build ever-larger AI models.
Neoclouds are primarily commodity players (see What is the outlook for GPU cloud providers?). Although they may offer some additional services, they predominantly match supply with demand, pricing their offerings inexpensively to attract volume and focusing on a single commodity — GPUs. This price-driven focus contrasts with hyperscale cloud providers, who offer a wide range of services, adding value through the management of infrastructure, platforms and software.
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