What Is a Neocloud?

AI native GPU clouds are powering the next wave of intelligence.

I’ve been designing private clouds for over 20 years, and I’ve been very vocal about my disdain for the cloud. More specifically, the cloud done wrong. Have I architected hybrid cloud solutions? Absolutely, but I’ve done them right.

The most frustrating thing about the rise of the cloud for me has always been the lack of upfront planning, because it was so easy to consume. Just take out your credit card and go. Moving to the cloud (or adopting Kubernetes) because it’s trendy. Data center evacuations based on the CIO getting their bonus.

The biggest problem I’ve always seen with the cloud is lack of a true business reason, and lack up upfront planning.

Neoclouds are on the rise, and I don’t hate them. If you hear whispers of neoclouds in the last year, you aren’t alone. This term has gained traction over the course of 2025, so let’s demystify what neoclouds are, spotlight the key players to watch, and explore why they are a game-changer for businesses ditching the failures they’ve seen in legacy clouds.

What Exactly Is a Neocloud?

Neoclouds are specialized cloud platforms designed from the ground up for AI and high-performance computing (HPC), emphasizing GPU-intensive resources over general-purpose CPU setups. Unlike traditional hyperscalers, which offer a broad menu of services (storage, databases, VMs), neoclouds are focused on delivering raw, scalable GPU power for tasks like model training, generative AI, and real-time inference.

Think of them as AI factories in the cloud, clusters of Nvidia H100s, A100s, or emerging Blackwell GPUs, interconnected with low-latency networking, all billed flexibly via pay-as-you-go or reserved capacity.

How are they different from “the cloud”? I’m glad you asked. They have:

GPU-Centric Architecture: Prioritizing parallel processing for AI, with features like auto-scaling clusters and optimized storage for massive datasets.
Cost-Effectiveness: Prices have plummeted making them significantly cheaper than hyperscaler equivalents for AI tasks.
Hybrid Flexibility: Often blending bare-metal access with managed services (e.g., Kubernetes orchestration) to avoid lock-in.
Sustainability: Many emphasize renewable energy and efficient cooling to meet environmental demand, which is a bold claim when you look at the environmental support required for AI systems.

Born from the crypto mining pivot (since they had a ton of GPUs) and the AI boom, neoclouds now command a slice of the massive AI infrastructure market. They’re not replacing the hyperscalers but augmenting them. Hyperscalers are handling overflow for the big hyperscaler players and providing specialized AI tools for organizations who want to make the jump directly.

Key Neocloud Players Spotlight

The neocloud landscape is crowded, so let’s take a closer look at some of the key players. We are going to break down the top four neoclouds, along with plenty of links to learn more.

CoreWeave (CRWV): Scalable GPU Infrastructure Provider

Overview: Founded by ex-crypto miners, CoreWeave pivoted to AI in 2019, becoming the first to deploy Nvidia’s latest chips (e.g., Blackwell in early 2025). It operates 32+ data centers with 250,000+ GPUs, focusing on bare-metal GPU leasing for training and inference.
Why It Stands Out: Platinum-rated by SemiAnalysis for security, reliability, and proprietary tech like SUNK (Slurm + Kubernetes hybrid). Nvidia’s $3B stake and a $6.3B capacity buyback through 2032 ensure supply chain dominance.

Nebius (NBIS): Vertically Integrated AI Cloud Platform

Overview: Reborn from Yandex’s international arm in 2024, Nebius is a full-stack AI cloud with bare-metal infra, multi-tenant services, and tools like Nebius Token Factory for open-model inference. It spans the US, Europe, and Middle East with 470MW capacity (expanding to 900MW by year-end).
Why It Stands Out: Gold-tier alongside Azure; excels in virtual GPUs rivaling bare-metal performance and developer-friendly APIs. Debt-free with $2.5B cash, it funds 40x growth internally—unlike debt-heavy peers. Nvidia’s 1.5% stake adds firepower

Applied Digital (APLD): Essential Infrastructure Provider for AI Ecosystems

Overview: APLD builds and operates data centers, leasing colocation space and power to neoclouds rather than running end-user clouds. Its 1GW Ellendale campus supports AI/HPC tenants.
Why It Stands Out: Not a direct neocloud competitor but a backbone provider—think “picks and shovels” for the AI gold rush. Nvidia’s investment signals trust.

WhiteFiber (WFBR): Secure, Sovereign AI Infrastructure Specialist

Overview: WhiteFiber is a next-gen neocloud operator focused on secure, sovereign AI infrastructure, delivering GPU clusters with built-in data residency, compliance-grade encryption, and zero-trust networking. It targets regulated industries (finance, defense, healthcare) needing GPUaaS without public cloud exposure.
Why It Stands Out: Unlike generalist neoclouds, WhiteFiber emphasizes geofenced compute, your data never leaves your jurisdiction. It integrates air-gapped private links, FIPS 140-3 compliance, and audit-ready AI pipelines. Early 2025 deployments include H100 clusters in U.S. and EU sovereign zones.

Why Neoclouds Matter: Solving the AI Compute Crunch

I’ve seen organizations hemorrhage cash on public cloud “transformations” that deliver little ROI. Neoclouds fix this by being proactive and AI-first. Look, neoclouds know all about the pitfalls of the hyperscaler and are just designed differently. They have built in automation, flexibility, and scalability from the get go in order to ensure speed of deployment, cost control, and overall efficiency.

We have seen a good deal of repatriation back on prem in recent years due to some of the pitfalls of hyperscaler consumption. However, those who have shied away from public clouds and come back on prem may be scratching their head as they look at deploying AI solutions. The fact of the matter is AI workloads are a huge consumer of power and cooling in the data center, and many private data centers simply cannot support these workloads.

My favorite thing about neoclouds? It is hard for organizations to shoot themselves in the foot. If you’re going to a neocloud you’re going for a very specific purpose, you aren’t just taking out your credit card to give it a try and see what happens.

The Road Ahead: Are Neoclouds Your Next Move?

These neoclouds aren’t just any cloud, they are a resilient backbone for AI. As a private cloud fan and hyperscaler skeptic, I’m watching this place closely. Neoclouds deliver the purposeful infrastructure we’ve needed all along.

If you’re looking at an AI project, and looking up to the clouds, I suggest taking a look at the neoclouds before the more traditional hyperscalers. While there may be a bit of a learning curve with a new environment, the benefits in this case outweigh many of the barriers.

More Resources

Here are some additional resources to look at when exploring these neoclouds.

CoreWeave

Nebius

Applied Digital

White Fiber

Melissa Palmer

Melissa is an Independent Technology Analyst & Content Creator, focused on IT infrastructure and information security. She is a VMware Certified Design Expert (VCDX-236) and has spent her career focused on the full IT infrastructure stack.