Neoclouds have limited cybersecurity. Next time agents successfully go rouge, they'll try taking over a neocloud to run more copies. This is bad. Thus: neoclouds should greatly strengthen their cybersecurity and every company with strong cyber models should help with that.

Neoclouds are scaling faster than the hyperscalers ever did because AI turned scarce power and GPU-ready infrastructure into the biggest bottleneck in computing. $CRWV reached $2.6B of quarterly revenue by quarter 26 versus ~$600M for $AMZN AWS at the same point while $NBIS is already ~$580M by quarter seven as both monetize capacity in a market where demand significantly exceeds supply. What makes the model even more durable that the demand is increasingly contracted with CoreWeave sitting on $104B of backlog and Nebius above $46B as $MSFT and $META effectively help finance outside capacity they cannot build fast enough on their own.

Neoclouds: A Short Story -> $NBIS: 242% YTD - "Nebius will take care of you" ( $NVDA's Jensen Huang). -> $CRWV: 67% YTD - debt machine. -> $IREN: 58% YTD - excessive dilution. Nebius will become a $100B company in Q3.

$NVDA CFO ON NEOCLOUDS: Neocloud partners are expected to exit the year with 8 GW of installed capacity, up from roughly 3 GW at the end of 2025. Nvidia is also introducing a new financing structure where it provides take-or-pay commitments on a portion of capacity, helping lenders underwrite projects without Nvidia making loans. In return, Nvidia gets paid twice: once on the hardware sale, and again through a share of rental revenue above the guaranteed floor. Nvidia says this model could create billions in additional recurring revenue over the medium to long term.

customer concentration of neoclouds over time could be your indicator that the capex cycle is still in its early chapters. the caterpillar deal is an under appreciated note from coreweave’s earnings call. neoclouds have been working on the industrial enterprise in autos, healthcare and robotics for a while, but physical AI was still 1% or so of CRWV’s Q1 revenue backlog. this figure wasn’t shared this quarter, is surely still small but clearly going to grow w the largest global construction co signed “demand is broadening beyond frontier labs into software, industry (e.g., Caterpillar on Vera Rubin for physical AI), life sciences (Isomorphic Labs), financial services (Flow Traders, IMC), public sector (Leidos), and more” - Mike 1 year ago Microsoft was 71% of revenue (others were Nvidia, OAI, labs). this quarter the top 3 customers were 36%, 26%, and 10% of revenue that’s on 0.47GW of capacity then to 1.5GW today a long way to go to continue diversifying customers and feeding a deep backlog we are in very early days of industrial enterprises adopting and managing physical AI systems, CAT is a strong signal

Article on $NVDA & the neoclouds vs $AMZN, $MSFT & $GOOGL: - I cover how and why $NVDA wants to commoditize the data center layer, - How hyperscalers are attacking the chip design layer, - The neocloud business models in relation to $NVDA new revenue share and backstopping deals - Systemic risks that might arise for the whole sector if we continue down this path.