What Is a Neocloud? The GPU Clouds Powering the AI Boom
Neoclouds specialize in renting GPU capacity for AI training and inference, competing with hyperscalers through dedicated clusters. Several have crypto roots: CoreWeave began as an Ethereum miner, while Bitcoin miners are repurposing sites, power connections and permits for AI data centers. Their business depends on access to chips, power and financing, but rapid hardware depreciation and heavy debt threaten profitability. Bernstein estimates miners contracted about 7 GW of capacity in 19 deals worth over $135 billion by July 2026; TeraWulf signed a 20-year, roughly $19 billion lease with Anthropic. In October 2026, Gartner warned that over 80% of neoclouds may cease operating independently by 2030. CoreWeave, Nebius and IREN shares fell sharply, while CoreWeave debt yields and default-insurance costs rose. Strong demand and contracted future capacity support the sector, but it remains uncertain whether providers can generate enough returns to cover investment and debt.
