Neoclouds like CoreWeave are getting much bigger—and riskier

Neoclouds have grown rapidly by leasing AI capacity to model-makers and hyperscalers while benefiting from Nvidia’s financial support. Their revenue and capacity are expanding quickly, but the expansion is funded by a sharp increase in borrowing and leases, while the companies remain unprofitable. Higher interest rates or slower AI adoption could leave them unable to fill expensive new facilities. The article concludes that they must evolve from middlemen into differentiated infrastructure or software providers.