The great neocloud consolidation begins

By Piyush Gupta, VP Sales and Business Development for India, APAC and the Middle East, Vultr

In 2026, Indian enterprises will adopt heterogeneous GPU portfolios combining general-purpose and specialized processors to balance performance, efficiency, and cost. Success will hinge on flexible AI frameworks that enable rapid deployment, testing, and iteration of AI models, unlocking innovation and measurable business outcomes. The GPU cloud market is consolidating, with over 80% of high-performance GPUs deployed by a few neocloud providers who leverage strong capital and scale to meet soaring AI demand. India has deployed over 80,000 GPUs through the IndiaAI Mission. However, providers lacking sufficient capital and infrastructure face competitive challenges. Focused infrastructure upgrades, grid power investment, data center cooling, and accelerated indigenous GPU production, with trials planned by end-2025, are critical to sustaining growth and reducing import dependence.

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