The neocloud shakeout is coming, and Nvidia has the most to lose
After stock crashes and Firmus's scrapped IPO, industry executives expect only seven to ten of the hundreds of AI cloud providers to survive. CoreWeave lost a quarter of its market value, and Microsoft pulled out of a deal with Nscale for 23,000 Nvidia chips. Nvidia has a lot riding on the outcome, since customers outside the hyperscalers make up 45 percent of its data center revenue.
Via The Decoder
After a week of plunging stock prices and scrapped IPO plans, industry executives expect a shakeout among up-and-coming AI cloud providers. Nvidia has a lot riding on how it plays out.
Hundreds of AI cloud providers are rushing into the market right now. Two executives from the data center and neocloud industries told The Information that only seven to ten of them will still be around in a few years. Several executives think consolidation is inevitable.
Their predictions come after…
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