Been watching the AI infrastructure play closely, and there's something happening in the neocloud space that feels underrated right now.

So here's what caught my attention. During Amazon's recent earnings, the big question everyone was fixated on was capital expenditures. Like, where exactly is all this money flowing? Over the past few years, the hyperscalers—Microsoft, Alphabet, Meta, Amazon—have collectively dropped hundreds of billions on GPUs and data centers. The trend is clear: they're all in on artificial intelligence infrastructure.

But here's the thing. AWS is the largest cloud platform in the world, right? Yet the problem is that AI workloads are scaling faster than they can actually build and equip new data centers. And then there's the chip procurement bottleneck on top of that. So what do you do when you're capacity-constrained? You partner with neoclouds.

This is where it gets interesting. AWS signed a $5.5 billion deal with Cipher Mining last year. Nvidia just dropped $2 billion into CoreWeave. And Microsoft committed $9.7 billion to Iren. These aren't small moves—this is the major players essentially outsourcing their artificial intelligence infrastructure capacity to specialized providers.

Neoclouds are basically GPU rental platforms. They partner with chip designers, outfit data centers with GPU clusters, and then rent that capacity to companies that need it. The model is working. You've got Cipher, CoreWeave, and Iren all gaining serious traction.

What I find compelling is the pattern here. AWS already went the neocloud route. Nvidia's strategic $2 billion bet on CoreWeave validates the entire business model. So logically, if AWS is doing it and Nvidia is backing it, other hyperscalers are probably going to follow. That timing alone suggests there could be more partnerships coming.

Looking at it from a portfolio perspective, artificial intelligence infrastructure plays have been rewarding, but the neocloud angle feels like the next leg. Whether or not a specific deal drops on an earnings call, the broader trend is what matters. The hyperscalers need capacity, the neoclouds are solving that problem, and the deals keep getting bigger.

Iren's positioned well in this space. Not saying time every announcement perfectly, but if you're building an AI infrastructure position, neoclouds probably deserve a closer look. The fundamental thesis here is solid—capacity constraints are real, and specialized providers are filling that gap. That's a tailwind worth paying attention to.