Neoclouds Top $25 Billion in 2025, Eyeing 20% of AI Cloud by 2030

1 articles · Updated · InfoWorld · Aug 31

Neocloud revenue exceeded $25 billion in 2025, and Gartner projects the specialized providers could capture 20% of the $267 billion AI cloud market by 2030.
Cost is the main draw: executives say neocloud GPU capacity can run at about one-third hyperscaler pricing, with reported savings of 60% to 70% and provisioning measured in days rather than months.
Their edge comes from AI-native design—bare-metal GPU access, InfiniBand networking, and parallel file systems built for large training and inference clusters rather than general-purpose cloud workloads.
Adoption is still uneven. McKinsey says only 10 to 15 of more than 100 neoclouds operate at meaningful scale in the U.S., and many enterprises still favor hyperscalers for security, governance, integrations, and resilience.
The market may settle into coexistence, not displacement: hyperscalers are already major neocloud customers, while custom chips such as Trainium, Ironwood, and Maia could limit how far NVIDIA-centric rivals expand.