🔥 Spending $4.6 billion to scoop up GPUs! The computing power rental business behind Megaspeed is far more than simply stockpiling GPUs.
A new player is entering the AI computing race: Neocloud. Buy GPUs, build clusters, rent out computing power, and earn long-term rental income.
Many in the market are focused only on its purchase of 136,000 GPUs, overlooking the brutal rules of an asset-heavy business model. GPUs depreciate every day, while data center costs, electricity bills, and loan interest are fixed expenses. Without long-term customers, the losses can be enormous.
With 1,000 GPUs fully rented out for a year, theoretical revenue is $17.52 million. If utilization drops to 60%, revenue shrinks accordingly. Supply keeps pouring in, and rental prices will remain under pressure.
CoreWeave has become a successful model, serving Microsoft and OpenAI—but that model can’t simply be replicated by Megaspeed. So far, Alibaba is the only confirmed lead on a major customer; all other key operating data is missing.
The endgame in this business isn’t about who stockpiles the most GPUs. It’s about who can keep them running and generate steady cash flow.
$NVDA
A new player is entering the AI computing race: Neocloud. Buy GPUs, build clusters, rent out computing power, and earn long-term rental income.
Many in the market are focused only on its purchase of 136,000 GPUs, overlooking the brutal rules of an asset-heavy business model. GPUs depreciate every day, while data center costs, electricity bills, and loan interest are fixed expenses. Without long-term customers, the losses can be enormous.
With 1,000 GPUs fully rented out for a year, theoretical revenue is $17.52 million. If utilization drops to 60%, revenue shrinks accordingly. Supply keeps pouring in, and rental prices will remain under pressure.
CoreWeave has become a successful model, serving Microsoft and OpenAI—but that model can’t simply be replicated by Megaspeed. So far, Alibaba is the only confirmed lead on a major customer; all other key operating data is missing.
The endgame in this business isn’t about who stockpiles the most GPUs. It’s about who can keep them running and generate steady cash flow.
$NVDA
