Neoclouds - or newly emerged cloud providers focused on AI - have seen a revenue growth of more than 200 percent since last year, according to Synergy Research Group.

Synergy states that neocloud revenues in the second quarter of 2025 reached $5bn, up 205 percent from the previous year, and are set for a 2025 revenue of $23 billion.

The analyst further predicts this could reach $180 billion in 2030 with an annual growth rate averaging at 69 percent.

Of those included in the pool, Synergy unsurprisingly notes that CoreWeave is leading the group in terms of those directly competing with traditional hyperscalers.

CoreWeave's August earnings report showed the company had a revenue of $1.2bn for that quarter, up 207 percent year over year. As a result, it raised its full-year revenue guidance to $5.15-$5.35bn.

The Synergy Research report, however, has included OpenAI within its research, which is not typically identified as a "neocloud." The report notes that OpenAI's "focus and business model are different from the other neoclouds," but is listed as the largest player in its sample.

Other major GPU-as-a-Service (GaaS) players noted are Crusoe, Lambda, and Nebius. Smaller companies referenced include Altair, Applied Digital, Bitdeer, Core42, Core Scientific, DataRobot, Fluidstack, Hive Digital, Humain, Hut8, Iren, Mawson, Northern Data Group, Nscale, TeraWulf, Together AI, and WhiteFiber.

“There is a lot of hype around neocloud, Stargate, and gigawatt campus developments, but when you work through the marketing smoke and mirrors and look at the underlying numbers, the growth rates and future market size are truly impressive,” said Jeremy Duke, Synergy Research Group’s founder and chief analyst.

“GPUaaS and GenAI platform services are currently growing at around 165 percent per year, and neoclouds are gaining share in those high-growth markets. There is every reason to believe that they will continue to grow their market share, as cloud providers of all types struggle to match supply with burgeoning AI demand.”

The AI cloud sector as a whole is seeing massive amounts of investment pouring in, with players - neo and traditional cloud providers - announcing multi-billion-dollar projects and deals.

As a result, several have raised concerns that an AI "bubble" is forming, including OpenAI's CEO Sam Altman and Alibaba's Joe Tsai.

Neoclouds may currently be seeing a lot of success in their operations, but the large quantity of debt often needed to finance their infrastructure build-out and deployment, along with the depreciation of hardware and rife competition, creates an unstable environment. DCD has previously done a deep diver into the economics of the neocloud. Read it here