When an enterprise requires cloud infrastructure, it typically partners with a hyperscaler like Amazon or Microsoft. But as enterprises scale their Artificial Intelligence (AI) workloads and face sovereign AI pressures, neoclouds are disrupting the compute supply chain.
To put it simply, neoclouds fill the gaps left by hyperscalers.
These specialist cloud service providers may be smaller in scale, but they support regional compliance and specific applications. As a result, neoclouds are moving into enterprise view, setting the stage for major restructuring of the compute ecosystem.
Here are four key trends ABI Research is covering across the neocloud market in 2026.
A US$250 Billion Market Opportunity Is Brewing for Neoclouds
This is the amount of money ABI Research expects neocloud companies to generate from selling GPU-as-a-Service (GPUaaS) by 2030. Key catalysts are the expansion of AI inference workloads and cloud sovereignty demands.
Although training workloads lead in terms of GPUaaS revenue now, inference workloads will account for 80% of the neocloud market by 2030. Propelling this shift is the scaling of Generative Artificial Intelligence (Gen AI) across production and real-time enterprise workflows.
Thanks to a number of U.S.-based hyperscalers and a mature enterprise AI ecosystem, North America easily leads the neocloud market. It accounts for 88% of total neocloud GPUaaS revenue in 2026, with that number dropping to 72% by 2030 as other regions fulfill sovereign cloud initiatives.
Full-Stack Capabilities Are Being Acquired Now and Latecomers Will Miss Out
Neocloud providers have been busy with acquiring software, data, and AI startups to build full-stack capabilities. Neoclouds face fierce competition and must find ways to differentiate themselves from hyperscalers. Doing this all in-house is challenging, or rather implausible, for most providers. This leaves them acquiring new technology competencies through acquisition.
The year 2025 saw several headline-grabbing acquisitions by neoclouds, as presented in Table 1.
Table 1: Notable Neocloud Acquisitions in 2025 and Their Strategic Outcomes
(Source: ABI Research)
|
Acquisition |
Outcome |
|
Weights & Biases (CoreWeave) |
Integrates directly into CoreWeave’s platform to enhance AI model tracking, observability, and experiment management, strengthening its developer ecosystem. |
|
OpenPipe (CoreWeave) |
Adds reinforcement learning and agent training capabilities, supporting customers in building and refining intelligent AI agents. |
|
Monolith AI (CoreWeave) |
Marks CoreWeave’s first step into verticalized AI applications, expanding into industrial R&D and design simulation through test-driven Machine Learning (ML). |
|
Saagie (Scaleway) |
Strengthens Scaleway’s data governance and orchestration capabilities, enabling end-to-end DataOps workflows across ingestion, processing, and visualization. |
|
Refuel.ai (Together AI) |
Enhances Together AI’s data workflow and processing capabilities, integrating Refuel LLM for data-centric tasks and Refuel Cloud for automation and workflow development. |
Neoclouds Must Find Alternative Silicon Partners
NVIDIA, AMD, and Intel are the default semiconductor partners of neocloud providers to date. However, ABI Research Senior Analyst Paul Schell says in his ABI Insight that neoclouds “should watch the progress of new silicon and contemplate future hardware procurement roadmaps beyond NVIDIA, AMD, and Intel.”
This caution stems from the supply constraints, pricing volatility, and competitive risks exposed from overreliance on a single vendor.
Groq’s partnership with Equinix in Europe and Australia will be closely followed by the neocloud market. If successful, others will likely aim to replicate a similar implementation. Cerebras, SambaNova, and Recogni are other silicon vendors that offer application-specific alternatives to GPUs.
What’s Next? ABI Research believes that neoclouds that adopt challenger silicon over the next 2 years and embrace open standards will gain a competitive advantage in terms of sovereign AI infrastructure and regional resonance.
Neoclouds Risk Irrelevance If They Don’t Tap Into the Enterprise Vertical
The vast majority of current neocloud GPUaaS demand comes from the traditional compute supply chain, notably semiconductors and hyperscalers. Case in point, NVIDIA is a key customer for Lambda and CoreWeave. Similarly, Microsoft represented 62% of CoreWeave’s total revenue in 2024.
ABI Research sees the potential danger of neoclouds being relegated to a merely back-end role if they fail to acquire enterprise customers. The bigger threat is that enterprise AI demand may never materialize at scale unless neoclouds actively educate verticals and build tailored solutions. Without this push, neoclouds could remain GPU brokers for hyperscalers and chipmakers, trapped in a commodity position and vulnerable to margin pressure as hyperscalers consolidate control.
What should neoclouds do? The path forward is for neoclouds to directly engage with enterprises and build brand trust with them. Enterprises want to hear about the measurable operational value they will gain from neocloud infrastructure.
Get the Free Whitepaper
To better understand the dynamics of the emerging neocloud landscape, download ABI Research’s whitepaper, 11 Things to Know About the Neocloud Market in 2026. Our Cloud research analyst team covers everything from enterprise pain points and cloud sovereignty to Venture Capital (VC) funding and business models.
