NeoCloud
topic on 12 shows · 22 statements across 18 episodes
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22 statements about NeoCloud, every show
Murdock: At Least Half of Neoclouds Will Fail Within 36 Months
“I think at least half of them go away within 36 months without, and if there's an economic disruption, a lot of them go away right away.”
Thompson: NVIDIA's neocloud financing deals effectively represent disguised price cuts
“If you actually look at their business holistically, what that is, is a price cut, right? Like they, now the price cut didn't show up in margins. It didn't show up in what they're offering, but a lot of what NVIDIA is doing is how can we maintain our margins?”
Feldman: Nvidia uses investments to pressure clouds and builders against rival chips
“There are ways for NVIDIA to use their balance sheet to limit competition, right? That if they invest in, in a NeoCloud, right? The NeoCloud is less likely to use a non-NVIDIA chip. If they invest in a model builder there's pressure not to use other people's c…”
Calacanis: AI hosting cost gains will accrue to Cerebras and neo-clouds
“So the gains you'll see there will be Cerebris, Neo clouds, Caruso cloud, et cetera.”
O'Driscoll: Nvidia Recognizes Hardware Revenue Upfront Under ASC 606 With Put-Back Rights
“They're basically, quote, selling you the chips up front, so they are going to recognize that hardware revenue up front, and then they're giving you, as the buyer, the NeoCloud, a backstop that if you can't use that compute, you get kind of put back rights on …”
Eliahu-Ontiveros: Utilities now demand multi-billion dollar commitments for gigawatts of power
“Utilities now are asking multi-billion dollar commitments for gigawatts gigawatts of power. Turbines and so on and so forth is the same thing. So yes, pretty massive disadvantage.”
Eliahu-Ontiveros: Nvidia balance sheet support will unlock neocloud growth in 2H 2026
“I expect, you know, second half of 20 seconds, you'll see NeoCloud sort of growth be unlocked much more through the actions of NVIDIA as they provide their volunteer support.”
Bubna: Modal operates zero data centers, running entirely on NeoClouds
“We don't have our own data centers. We just run across a lot of Neo clouds.”
Midha: The 'NeoCloud' concept is mostly marketing speak
“I think this whole idea of NeoCloud being somehow this new category is a lot of marketing speak. There are really good, reliable, trusted data center providers in America who've been around 20 plus years.”
Balaban: Most neocloud competitors cannot launch online clusters over 32 GPUs
“Most of the other NeoClouds either don't have the ability to launch a cluster from their website or max out, I'll say, 32 GPUs.”
Feldman claims Nvidia funds neoclouds to create competitors for traditional hyperscalers
“I think it has been NVIDIA's strategy to try and create competitors for the traditional hyperscalers. They have funded and backstopped and over allocated to the neoclouds. They have created a dependence, which is probably not healthy.”
Feldman claims NeoClouds face massive cost disadvantages buying Nvidia hardware
“When Google or when Cerebris puts our equipment in our own data center, right, we have a significant advantage Over a NeoCloud, because NeoClouds are buying hardware with gross margins of 70, 80% for NVIDIA.”
Sunwalker: Nvidia investments in neoclouds resemble revenue swaps
“You see NVIDIA investing in a lot of Neo clouds that go buy their GPUs. They help start these new, new clouds. And then you have of course, like NVIDIA investing in, in AI labs that end up being like downstream consumers of these GPUs. And so like, I think in …”
Sundheim: Neo-Clouds Will Survive Because They Outperform Hyperscalers at Running GPU Clusters
“I certainly would not make the case that they are fantastic businesses, but I don't think they're going away like people thought. Because I think they're better at Running GPU clusters than the traditional hyperscalers are.”
Intrator: CoreWeave's deployed GPU fleet exceeds all other neoclouds combined
“If you took all of the other neoclouds and added their GPU fleets up, we would still be a multiple of all of them combined in terms of the number of GPUs that are up and running and delivered to clients.”
Matthew: Hyperscalers hype power constraints to induce third-party infrastructure overbuilding
“So if you think about that from a power standpoint, my incentive in that scenario would be to talk up power constraints, right? Saying that there's not nearly enough of it. We need to build so much. Like this is the greatest cycle because that will incent spec…”
Corbitt: GPU Cloud Fine-Tuning Offerings Failed Due to Poor Usability
“I did not see the competition ever really materialize from the Neo clouds, from the GPU providers. Everybody had an offering in fine tuning. When we were talking to customers, nobody used them because they just were really hard to use.”
Patel: Multiple major neoclouds have sold out of NVIDIA Hopper capacity
“It turned out that multiple major neoclouds had sold out of hopper capacity.”
Patel: Many VC-backed NeoClouds will fail from low utilization
“So a lot of these companies will fail, either because it no longer makes sense for them to continue to get venture funding, or they end up getting out-competed because they just can't get their utilization up, unlike, you know, some other clouds, right?”
Patel: Some NeoClouds beat AWS, Google, and Azure on software performance
“Actually some of these NeoClouds are better than Amazon and Google and Microsoft in terms of software.”
Patel: Only 5 to 10 of the 80 GPU NeoClouds will survive
“80 NeoClouds are not going to survive. Maybe five to 10 will. And that's because five of those are sovereign, right? And then the other five are like actually like market competitive.”