The Core of Neoclouds is Utilization
rohanpaul_ai · x · 2026-07-14
Discussing the neocloud business, Gavin Baker notes that these companies are incredibly hard to run well. Taking CoreWeave as an example, they can sell GPU hours at a massive premium because their GPU utilization rates are 2–3 times higher than those of underlying suppliers. The key takeaway: the compute rental business isn't just about hardware scale; it's fundamentally about scheduling, utilization rates, and operational efficiency.
Related event: GPU Utilization Is the Crux of Neocloud Economics(2 posts)→
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