Global Software: How do the AI Labs and neoclouds impact Cloud (IaaS / PaaS)

The IaaS/PaaS market is changing in a way we have not seen since Microsoft Azure started to compete with AWS. The change is being driven by AI and the emergence of, surprisingly, not the neocloud but rather the AI labs. AI labs, especially OpenAI and Anthropic, have been morphing into development platform vendors, which will put them on a trajectory to compete with their hyperscaler partners and the general development ecosystem. The AI labs have already expanded beyond building models into other areas, especially the development platform space, with initially coding tools and then agentic app development offerings, increasing their reach and placing them into direct competition with the broad range of development product companies, including hyperscaler and SaaS vendors targeting the agentic platform space. While the neoclouds are currently taking share in AI IaaS, as demand/supply normalizes and inferencing becomes by far the largest driver of AI spending, the neoclouds will likely b