GPUaaS Market to Grow from $5.7bn to $26.4bn by 2031, Nvidia Backs Neoclouds
Neoclouds specialise in renting high-end GPUs at two to seven times lower rates than hyperscalers, driving GPUaaS market growth from $5.70bn in 2025 to $7.36bn in 2026 and projected to hit $26.43bn by 2031 at a 29.12% CAGR. Nvidia supplies core hardware and backs key neoclouds like CoreWeave and Lambda.
1. Emergence of Neoclouds
Neoclouds have emerged as providers specialising in high-end GPU infrastructure for AI workloads, catering to large language model training, real-time inference, and research. The GPUaaS market was valued at $5.70bn in 2025 and is forecast to reach $7.36bn in 2026, climbing to $26.43bn by 2031 at a 29.12% compound annual growth rate.
2. Competitive Advantages over Hyperscalers
These neoclouds offer GPU rentals at rates two to seven times lower than traditional cloud providers, delivering rapid deployment and scalable GPU fleets. Many operators, including CoreWeave and Crusoe, pivoted from cryptocurrency mining to generative AI workloads, leveraging existing GPU infrastructure and expertise.
3. Nvidia's Strategic Position
Nvidia underpins this niche by supplying the core GPUs and injecting capital into leading neoclouds such as CoreWeave and Lambda. This strategic positioning enables Nvidia to capture incremental AI infrastructure demand beyond hyperscalers and strengthens its ecosystem during surging AI adoption.