Income generated by neoclouds anticipated to exceed $23bn in 2025, predicts Synergy
The income generated by neocloud service suppliers, who’re seemingly usurping the standard hyperscale suppliers in the case of internet hosting synthetic intelligence (AI) workloads, is anticipated to exceed $23bn throughout 2025.
That’s in response to market knowledge shared by Synergy Analysis Group (SRG), which confirmed the income generated by neoclouds surpassed $5bn through the second quarter of 2025, which is up 205% on the earlier 12 months.
All through the course of 2025, there have been quite a few bulletins about neocloud suppliers, equivalent to CoreWeave and the OpenAI-backed Stargate challenge, asserting the opening or future improvement of datacentre websites that can be used to deal with compute-intensive AI workloads.
The purveyors of neocloud providers specialise primarily within the provision of the graphics processing models (GPU) infrastructure wanted to run AI workloads, and – because of this – are generally known as being GPU-as-a-service (GPUaaS) suppliers.
That is in distinction to the extra conventional hyperscale suppliers who supply a broader vary of cloud providers, fairly than simply GPU infrastructure providers.
The uptick in demand for neocloud providers has, in flip, given rise to a “lot of hype and exaggerated or unsubstantiated claims in regards to the large buildout of gigawatt campuses” to underpin the projected development of generative AI workloads, stated SRG in its analysis be aware.
Nevertheless, it predicts that the income generated by neoclouds will hit $180bn by 2030, albeit with “street bumps” alongside the way in which, within the type of financing difficulties, energy provide points and issues sourcing the mandatory {hardware}.
Nevertheless, it’s SRG’s view that the underlying demand for AI providers will assist the neocloud sector overcome these obstacles and different aggressive pressures, on account of the truth that suppliers are concentrating on the fast-growing AI section.
“Neocloud plans and initiatives stay considerably fluid, however in mixture, Synergy sees them steadily gaining market share in these high-growth goal market segments,” stated SRG in its analysis be aware.
“By way of being a direct competitor to the standard hyperscale cloud suppliers, CoreWeave is main the group. Whereas its focus and enterprise mannequin is totally different from the opposite neoclouds, OpenAI is the biggest of the group, and can stay a key participant over the approaching years because of its Stargate initiatives.”
As beforehand reported by Pc Weekly, the OpenAI-backed Stargate initiative has seen the ChatGPT maker embark on joint ventures with the likes of GPU supplier Nvidia and neocloud agency Nscale within the UK, within the pursuits of offering sovereign compute capability for the only real goal of internet hosting AI fashions.
Usually, neoclouds are both comparatively new startup firms or, as is the case with Nscale, are crypto mining firms which have pivoted to offering high-performance computing providers, stated SRG.
“There’s a number of hype round neocloud, Stargate and gigawatt campus developments, however while you work via the advertising smoke and mirrors and have a look at the underlying numbers, the expansion charges and future market dimension are actually spectacular,” stated SRG founder and chief analyst Jeremy Duke.
“GPUaaS and GenAI platform providers are at present rising at round 165% per 12 months and neoclouds are gaining share in these high-growth markets,” he added. “There’s each purpose to consider that they are going to proceed to develop their market share, as cloud suppliers of all kinds wrestle to match provide with burgeoning AI demand.”
