Business · Updated 19 Oct, 05:03 pm IST
Industry expects shakeout among neocloud AI providers, Nvidia exposed
Why it matters for readers: It explains why some AI cloud startups may disappear and why that matters for access to compute and AI services.
- Industry executives say hundreds of neocloud providers have rushed into the market and expect only seven to ten to remain in a few years.1
- Signs of stress include Australian provider Firmus abruptly pulling its IPO and share-price drops among rivals such as CoreWeave.1
- CoreWeave lost about a quarter of its market value and its credit-risk measure hit a record high, according to reporting.1
- Microsoft reportedly pulled out of a deal to lease 23,000 Nvidia chips at a Nscale data center in Loughton, England, amid questions about power availability.1
- Executives expect consolidation will involve deep-pocketed asset managers, telecoms and fiber companies acquiring weaker neoclouds.1
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