02/09/2026
Did you know that neocloud industry exists, in part, because of a networking problem?
AI training can require thousands of GPUs working on the same model at the same time.
Those GPUs need to constantly exchange data - and if the network canât keep up, expensive GPUs sit idle.
That created demand for infrastructure built specifically for AI: dense GPU compute paired with high-bandwidth, low-latency networking.
Thatâs where neoclouds were born.
Companies like CoreWeave and Lambda Labs rebuilt the stack from scratch. Bare metal GPUs, no virtualization, and networks designed alongside the compute, not bolted on after.
The result: GPUs that stay utilized, training runs finish faster, and costs stop spiraling.
Which means you donât need to build your own data center to train AI models anymore - you can just rent one built to do this well.
P.S. are you still figuring out which cloud setup fits your workload?
