As telcos begin $88 billion cloud and edge growth, nascent RAN-based GPUaaS opportunity proves tempting

The global telecoms industry is under mounting pressure to find new revenue streams. After more than a decade of flat ARPU, rising costs, and the commoditization of core mobile services, operators are increasingly looking to cloud, edge computing, and AI-based infrastructure as the next engines of growth.

This report examines one of the most talked-about opportunities: GPU-as-a-Service (GPUaaS).

We explore the strategic drivers that make GPUaaS attractive for mobile network operators (MNOs), including demand for low-latency AI workloads, the potential to monetize spare GPU capacity, and the promise of diversifying beyond connectivity. At the same time, the report takes a critical view of the challenges facing this emerging market. Many of today’s AI startups remain heavily dependent on loss-leading venture capital models, raising questions about long-term sustainability. Investor sentiment is also beginning to shift, with early signs of caution following reports of high failure rates in GenAI pilots.

The analysis considers both the opportunities and the risks. Telcos do have a natural advantage in latency-sensitive compute applications, where their RAN proximity provides a unique position. However, the broader GPUaaS landscape is highly competitive, with hyperscalers like Nvidia and OpenAI scaling data center capacity at unprecedented levels. Consolidation among AI players is inevitable, and MNOs will need to carefully evaluate where they can realistically compete.

We surveyed MNOs and key technology vendors to gain a balanced view of whether GPUaaS can truly become a viable new revenue stream for telcos. The report highlights where the strongest opportunities lie, the pitfalls to avoid, and how operators can navigate a fast-moving market that is both tempting and uncertain.

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