Never really looked into neoclouds and it might just be me, but the neocloud business looks unattractive...

The biggest supporting argument I hear for them are how high compute prices are, but does this seem dependable for this business?

On the other hand, they are:

> Capital intensive

> Riddled with debt

> Very competitive

> Low margin

If there is someone the equivalent of Nvidia in this business, its is Nebius $Nebius(NBIS.US)

Outside of that, everything looks to be low quality.

What are the barriers to entry in this business? It seems anyone can open up as a GPU vendor to hyperscalers tomorrow, and be successful. Why? Because Nvidia has GPUs to sell. Do more neoclouds hurt them? Absolutely not.

Would love to hear the counter to this. Just an informative debate. I've never done something like this, so maybe it can be useful.