Neocloud refers to cloud providers and services that specialize in supplying high-performance computing resources such as graphics processing units (GPUs) needed to develop and run artificial intelligence services. Unlike general-purpose cloud services such as Amazon Web Services, Google Cloud and Microsoft Azure, neoclouds offer infrastructure built specifically for AI training and inference. They are seen as an emerging industry as demand for GPUs surges with the spread of generative AI.
In the AI industry, securing stable and efficient computing resources has become as important as model performance. Analysts say this shift is driving wider demand for neoclouds. Some neocloud operators, including CoreWeave, have raised large amounts of capital to expand their equipment buildouts. Neoclouds, however, offer more limited functions than general-purpose cloud services, which also handle data storage, security and software development. Some also forecast that growth in demand for top-tier GPUs, the sector's core business, will slow.
