Dare Obasanjo on Nostr: The Information reports a looming shakeout among neoclouds, which build or lease data ...
The Information reports a looming shakeout among neoclouds, which build or lease data centers, buy Nvidia GPUs and rent the computing capacity to AI companies.
There’s a circular relationship where Nvidia sells them GPUs while investing in some of these same companies.
Between heavy debt, rising borrowing costs, power shortages, construction delays and uncertain demand, industry insiders expect many neoclouds to fail.
A double whammy for Nvidia which risks losing customers and investments.
Many people believe the AI bubble popping means Anthropic or OpenAI failing. I believe the most likely bloodbath will be in the frenzy around data center construction.
https://www.theinformation.com/newsletters/ai-infrastructure/neocloud-shakeout-looms-nvidia-lot-lose 
Published at
2026-10-19 01:50:35 UTCEvent JSON
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"content": "The Information reports a looming shakeout among neoclouds, which build or lease data centers, buy Nvidia GPUs and rent the computing capacity to AI companies.\n\nThere’s a circular relationship where Nvidia sells them GPUs while investing in some of these same companies.\n\nBetween heavy debt, rising borrowing costs, power shortages, construction delays and uncertain demand, industry insiders expect many neoclouds to fail.\n\nA double whammy for Nvidia which risks losing customers and investments.\n\nMany people believe the AI bubble popping means Anthropic or OpenAI failing. I believe the most likely bloodbath will be in the frenzy around data center construction.\n\nhttps://www.theinformation.com/newsletters/ai-infrastructure/neocloud-shakeout-looms-nvidia-lot-lose\nhttps://media.mas.to/media_attachments/files/117/465/063/836/757/150/original/933dedb6b4a6ad9a.jpeg\n",
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