San Francisco · Anthropic · Microsoft · OpenAI · Google · Meta · BBC Technology
Names like CoreWeave and Nebius are familiar to the tech set in San Francisco and Silicon Valley
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These data centre companies, known as neocloud firms, run large warehouses packed with expensive computers, which they lease to major AI developers like Anthropic, OpenAI and Meta.
Key facts
- This helps explain how CoreWeave accumulated $35.1bn (£26.3bn) in debt," he said
- Analysts at Gartner predict by 2030, 80% of neocloud firms will "cease independent operations", while Forrester's experts expect at least three of them to be imminently acquired "as finances get
- IREN, Core Scientific and Applied Digital also started in crypto mining
- Their infrastructure left them well-positioned when AI exploded in 2022 with the introduction of OpenAI's ChatGPT
Summary
A once-obscure corner of the AI ecosystem finds itself in the spotlight, and investors don't all like what they see. Names like CoreWeave and Nebius are familiar to the tech set in San Francisco and Silicon Valley. They're now the subject of one of Silicon Valley's most heated debates. Many question whether neocloud firms are financially sound and what their recent stumbles tell them about the state of the AI economy.