"ChatGPT, launched in 2022, began making a significant impact on the market by late 2023, according to Synergy Research Group. The company's chief analyst, John Dinsdale, points out that cloud market leaders have experienced accelerated revenue growth over time. Additionally, the emergence of numerous neocloud companies ( see box: What is a neocloud?) has further strengthened the already positive momentum in the market."
"This sentiment is reflected in the Rethinking AI sovereignty whitepaper, published to coincide with the World Economic Forum, which notes that surging demand for compute is spawning new AI infrastructure development models, such as neocloud providers, national cloud providers and industry-specific artificial intelligence (AI) clouds. While hyperscalers offer global reach and full-service cloud ecosystems, neoclouds provide specialised, high-performance compute infrastructure tailored to AI training and deployment."
"One example is the Australian bitcoin mining company, Iris Energy. In 2021/2022, Neel Khokhani, a Dubai-based fund manager, acquired shares in the small Australian datacentre for $1 per share. By assisting the company in leveraging its substantial physical assets to transition into an AI infrastructure provider, the share price surged to $63 by 2026. This transformation led to a $60m increase in the company's valuation, which is now operating under the name Iren."
AI advances and rising compute demand have accelerated revenue growth for cloud market leaders and encouraged the emergence of specialised neocloud providers. New infrastructure models include neoclouds, national clouds and industry-specific AI clouds, each addressing performance, locality and sovereignty needs. Hyperscalers continue to offer global reach and full-service ecosystems, while neoclouds deliver high-performance compute tailored to AI training and deployment. Cryptocurrency miners are redeploying GPU farms toward AI acceleration to reduce bitcoin exposure. Transformations of mining datacentres into AI infrastructure providers have yielded substantial valuation gains and illustrate shifting market opportunities.
Read at ComputerWeekly.com
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