Neoclouds can scale rapidly by securing long-term customer contracts before purchasing hardware, using those contracts to raise financing, and then deploying the equipment.

“I mean, there's, like, a ne-- you know, and, and, and basically the answer is like, you know, and, and this might be obvious, but, like, what they do is, like, they go out to, like, you know, Anthropic or Cor-- or, or, or OpenAI or some, some big buyer or whatever, and they basically say, like, "Hey, do you wanna buy, like, five years of chips? You know, sign this contract. We give you a good rate."”

“And then they take that contract, and then they go to, you know, Wall Street and say, "Look, we got this, like, you know, big buyer, you know. They, they committed to ten billion dollars worth of chips.”

“Uh, we just need the money right now." And then they go and raise the money. And then they, like, you know, go to, like, Supermicro and Dell or whatever, and NVIDIA, and, like, get the hardware, and then they install it.”

“And then, you know, now they have, like, you know, deliver it to the customer, right?”

“So, so you have this, like, very nice sort of financial construct where you can basically sort of pre-sell things that you haven't even bought. And, and that means, you know, you can scale up extremely fast.”