What Is a Neo Cloud?

What Makes Neo Clouds Different

Neo Clouds are a new breed of cloud provider — built from the ground up to support artificial intelligence (AI) and high-performance computing (HPC). Unlike household names like Amazon Web Services, Microsoft Azure, or Google Cloud (often referred to as hyperscalers), Neo Clouds are purpose-built to do one thing exceptionally well: deliver raw, scalable computing power especially using graphics processing units (GPUs) for the most demanding workloads.

GPUs were originally developed for graphic rendering, the process of generating visuals from digital data, such as 3D models or animations. Their strength lies in handling thousands of calculations at once, which is why they’ve become essential for running AI models, powering generative AI, and enabling ultra-high-performance computing at scale.

Here’s what sets them apart:

• Focused: They specialise in just one thing, providing access to extremely powerful computing (mainly GPUs).
• Flexible: They let organisations rent that power when they need it, no heavy infrastructure required.
• Fast-moving: They’re often leaner and more agile than the big clouds, moving quickly to adopt the latest tech.

In short: if the big clouds are general-purpose supermarkets, Neo Clouds are highly specialised delicatessens, serving exactly what AI-driven businesses need most — performance, flexibility, and speed¹.

Explore This Guide to Neo Clouds

To understand why Neo Clouds are gaining serious traction, it’s worth exploring what makes them different, why they’ve emerged now, and how they’re transforming AI-driven businesses.

Whether you're here to grasp the basics or fast-forward to real-world use cases, use the links below to anchor directly to the sections most relevant to you:

• Purpose-Built for AI: The Neo Cloud Difference

• Are Neo Clouds Emerging Now?

• So, What Do Neo Clouds Actually Offer?

• What Kinds of Companies Use Neo Clouds?

• Real-World Examples: Neo Clouds in Action

• Will Neo Clouds Replace the Big Clouds?

• Line for Business Leaders

• Curious About AI Infrastructure?

Purpose-Built for AI: The Neo Cloud Difference

The key difference comes down to focus.

While hyperscalers offer thousands of cloud services for almost every IT function imaginable, Neo Clouds strip it all back and deliver one core thing really well: GPU computing for AI.

They don’t build their own chips. They don’t try to replace your full IT stack.
Instead, they rent you access to incredibly powerful GPUs, ready to train and run AI models at scale¹.

Some names leading the Neo Cloud wave include CoreWeave, Lambda Labs, Crusoe, and Nebius². These aren’t just startups with potential, they’ve grown rapidly by meeting one of today’s biggest business needs: on-demand access to AI infrastructure.

Why Are Neo Clouds Emerging Now?

It all comes down to one thing: AI is going mainstream, fast.

From ChatGPT to self-driving cars, businesses are now building products and services where AI is at the core — not just an add-on. These are what we call AI-first workloads. And they need huge amounts of computing power to work properly.

Training a large AI model can take weeks on standard infrastructure — but with the right GPUs and configuration, it could take days or hours³.

And it’s not just training. Even running those models in real time, like having a chatbot answer customers instantly or scanning millions of images, requires specialised infrastructure that’s fast, powerful, and scalable.

That’s where Neo Clouds come in. They provide this “AI horsepower”on demand, without the waitlists or complexity that sometimes come with hyperscalers⁴.

So, What Do Neo Clouds Actually Offer?

Let’s keep it simple. Neo Clouds deliver:

• Power: Access to top-tier GPUs (the same chips used in AI supercomputers).
• Speed: No delays or queues to get started.
• Cost efficiency: Often cheaper than using hyperscalers for AI tasks⁵.
• Flexibility: Pay for what you need, when you need it.
• Expert support: Teams that actually understand AI workloads.

In many cases, switching from a hyperscaler to a Neo Cloud can cut GPU costs by over 60%, especially for organisations training AI models or running them continuously⁶.

And because many Neo Clouds work with data centres like NEXTDC, customers can also choose where their workloads run, closer to users, reducing latency and improving performance.

What Kinds of Companies Use Neo Clouds?

Neo Clouds are used by:

• AI startups building chatbots, search engines or recommendation systems
• Research labs training large-scale machine learning models
• Media companies doing real-time rendering or video processing
• Enterprise teams working on custom AI tools that need GPU muscle

One Australian example is SharonAI, a Neo Cloud Operator that launched a GPU cloud service built entirely on infrastructure provided by NEXTDC, helping them enter the market fast, without needing to build their own data centre.

In fact, NEXTDC is helping power the Neo Cloud movement by providing the high-density, AI-ready infrastructure these providers need.

Real-World Examples: Neo Clouds in Action

To bring it to life, here are three standout Neo Cloud providers making waves — and what they help businesses do better:

1. CoreWeave

What they do: A US-based Neo Cloud that specialises in delivering GPU compute for AI, VFX (visual effects), and machine learning.
Who they serve: AI startups, animation studios, financial services firms.
What they’re solving: Companies working with large AI models or real-time rendering need high-performance GPUs without owning the infrastructure. CoreWeave gives them instant access to thousands of GPUs, helping them scale workloads without delay⁷.

2. Lambda

What they do: A Neo Cloud provider offering GPU cloud, servers, and workstations, purpose-built for deep learning.
Who they serve: AI researchers, data science teams, enterprise R&D groups.
What they’re solving: Deep learning models are incredibly compute-intensive. Lambda provides the power and simplicity developers need, often at a fraction of the price of hyperscale clouds⁶.

3. Crusoe Cloud

What they do: A Neo Cloud provider that uses flare gas (a byproduct of energy production) to power AI cloud data centres — blending sustainability with compute.
Who they serve: Climate-conscious enterprises, sustainability-focused AI firms.
What they’re solving: Organisations want to reduce the environmental footprint of their AI projects. Crusoe provides low-carbon GPU compute, helping companies align AI infrastructure with their ESG goals⁹.

Will Neo Clouds Replace the Big Clouds?

Not quite — and that’s not their goal.

Think of Neo Clouds as specialist partners, not replacements.

They complement the big clouds by filling a gap: ultra-high-performance computing for AI. As AI becomes more central to business success, many organisations are building hybrid models — using hyperscalers for general workloads, and Neo Clouds for AI-specific needs⁸.

Even the hyperscalers themselves are investing in or partnering with Neo Clouds to keep up with demand⁹.

So, if you're building AI into your organisation, or thinking about it, you now have more options than ever to do it efficiently and affordably.

The Bottom Line for Business Leaders

• Neo Clouds are cloud providers built specifically for AI and high-performance computing.
• They give organisations fast, flexible access to powerful GPUs without building infrastructure from scratch.
• They’re emerging because AI is reshaping how companies compete, and traditional clouds aren’t always fast or affordable enough.
• The right Neo Cloud partner can accelerate your AI projects, cut costs, and improve performance.
• Backed by providers like NEXTDC, Neo Clouds are already launching real services in the Australian market.

Curious About AI Infrastructure?

If your team is building AI products or delivering AI-powered services, the infrastructure behind it can make or break your success.

At NEXTDC, we partner with Neo Cloud Operators and GPU cloud providers to deliver the high-density, low-latency, AI-ready environments they need to thrive. Whether you're a fast-moving startup or a global enterprise, our facilities are purpose-built to support your journey, from idea to scale.

  Talk to our team about what your AI infrastructure needs to succeed.

Explore More Articles

• SharonAI Case Study: How a Neo Cloud Provider Launched at Scale with NEXTDC

• Neoclouds vs Hyperscalers: The Rise of AI-First Infrastructure

• Australia: The Strategic Launchpad for Hyperscale and Neocloud Expansion

Sources

1. StackDiary – What Is a Neo Cloud?
2. VentureBeat – The Race for AI Infrastructure
3. Statista – Forecasts on AI Infrastructure Demand
4. Forbes – Neo Clouds and AI Infrastructure
5. Digital Infrastructure Alliance – Price Comparison: Neo Cloud vs Hyperscaler
6. CBInsights – Infrastructure Trends in AI
7. TechCrunch – Inside CoreWeave’s Rise
8. Bloomberg – Hyperscaler Investments in Neo Clouds