Dive Brief:
- Neocloud providers helped fuel a cloud infrastructure services spending surge during the third quarter, according to Synergy Research Group analysis published Wednesday. The global market experienced its largest sequential increase, growing 28% year over year to $107 billion in Q3.
- The Big 3 hyperscalers — AWS, Microsoft and Google Cloud — continued to command the lion’s share of revenue, accounting for 63% of the infrastructure services market. AWS remained the dominant provider, with 29% of the market, compared to 20% for Microsoft and 13% for Google Cloud.
- An emerging class of GPU specialist providers dubbed neoclouds got an AI boost, with CoreWeave leading the pack, SRG Chief Analyst John Dinsdale said in the report. Crusoe, Nebius and Lambda are also rising players in the neocloud market, which is expected to more than triple year over year to $23 billion in 2025, according to an October SRG report.
Dive Insight:
Despite anxious chatter about a looming AI bubble, the technology has continued to drive cloud expansion throughout the year, sustaining massive capital investments in GPU infrastructure.
Amazon reported $34.2 billion in capital expenditures for Q3 alone, primarily to meet growing capacity demands for AWS cloud and AI services, Amazon Senior VP and CFO Brian Olsavsky said during an October earnings call.
Microsoft’s capital investments reached nearly $35 billion during the same three-month period, according to Microsoft EVP and CFO Amy Hood, and Google Cloud’s parent company Alphabet poured $24 billion into technical infrastructure, including servers, data centers and networking equipment, the company’s CFO Anat Askenazi said during a Q3 2025 earnings call.
The spending blitz was reflected in Nvidia’s revenue, which increased 62% year over year to $57 billion during the three months ending Oct. 27, the GPU giant reported Wednesday.
“Demand for AI infrastructure continues to exceed our expectations,” Nvidia EVP and CFO Colette Kress said, during the company’s Wednesday earnings call. “The clouds are sold out and our GPU installed base … is fully utilized.”
Earlier this year, CoreWeave was the first cloud platform to deploy Nvidia RTX PRO 6000 Blackwell Server hardware. The provider inked a $6.3 billion deal to purchase Nvidia GPUs in September and added $6.5 billion in OpenAI orders for GPU compute to its books later the same month.
Neoclouds are eroding hyperscaler AI dominance, according to Forrester Principal Analyst Lee Sustar. The analyst firm expects CoreWeave, Lambda, Nebius and other GPU service providers to take in $20 billion in revenue next year, Sustar said in a Monday blog post.
SRG expects neocloud revenue to approach $180 billion by 2030.
“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,” Jeremy Duke, SRG founder and chief analyst, said in the October report. “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.”
