In the latest episode of "MediaTalk," Mike Reynolds and Iuri Struta delve into the burgeoning world of AI neoclouds, a new breed of cloud service providers that have emerged from the remnants of the crypto mining industry. These neoclouds rent out GPU capacity to support AI workloads. This pivot has attracted significant investment, with over $10 billion funneled into the sector in 2024 alone.

CoreWeave, a leader in this space, exemplifies the rapid growth potential. CoreWeave's success is bolstered by a strategic partnership with NVIDIA, highlighting the intricate relationships between chipmakers and neocloud providers. However, challenges such as potential tariff impacts, reliance on a couple of major customers, and the need to avoid commoditization loom large. Following CoreWeave's public debut earlier this year, Iuri discusses the uncertain IPO landscape and the need for consolidation within the neocloud sector. As the industry evolves, neoclouds must navigate these complexities to sustain growth and remain competitive in the dynamic tech landscape.

More S&P Global content:

• AI supercharged emergence of AI neoclouds despite hazy long-term outlook

Featured experts:

• Iuri Struta, senior reporter at S&P Global Market Intelligence

Credits:

• Host/Author: Mike Reynolds
• Producer/Editor: Sarah James

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