Nvidia’s GPU demand drives record revenue and new access options
Nvidia’s dominance in AI GPUs fuels record revenue expectations of $108 billion for its October quarter, an 89% year-over-year jump, as demand outstrips supply. The company’s stock hit another all-time high, with its market cap nearing $6 trillion, reflecting its critical role in AI infrastructure. While hyperscalers like Amazon, Microsoft, and Google remain top customers—holding 59% of the…
Key points
- Nvidia’s October quarter revenue forecast at **$108 billion**, an **89% year-over-year jump**, driven by AI GPU demand
- Hyperscalers (Amazon, Microsoft, Google) control **59% of cloud infrastructure** but struggle to meet demand, with **Amazon admitting shortages for 2026–2027**
- **323 neocloud providers** now exist (up from 209 in September 2025), offering faster GPU access but often requiring upfront payments or long-term contracts
Companies like Modal and Reactor now rely on 25+ neoclouds to secure GPUs, citing hyperscalers’ limitations in capacity and speed. SpaceX has entered the market by renting out excess GPU capacity—dealing with Google and Anthropic (a $1.25 billion/month monthly contract through 2029) while also acquiring Cursor for $60 billion. Meanwhile, Oracle offers a ‘bring-your-own-GPU’ model, appealing to firms like OpenAI (which committed $300 billion to Oracle over five years) but hasn’t disclosed customer names. Smaller neoclouds, like Runpod and CoreWeave, cater to urgent needs but often require upfront payments and long lead times. Nvidia’s CEO Jensen Huang predicts further growth in this space, calling it a ‘whole new crop of exciting neoclouds.’
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Nvidia GPUs are everywhere. Here are the ways companies are accessing them
CNBC Technology · 10 October 2026
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This text was published by CNBC Technology and written by Jordan Novet. It is reproduced here with attribution so you can read it in full; the rights remain with the publisher. Read it at the source ↗
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