Backblaze announced the launch of B2 Neo, a purpose‑built cloud object‑storage platform that delivers up to 1 terabit per second of throughput for neocloud providers. The platform is designed to meet the extreme I/O demands of AI and machine‑learning workloads, offering a native storage layer that eliminates the need for customers to build their own infrastructure.
B2 Neo builds on Backblaze’s B2 Overdrive offering, which provides unlimited free egress and zero transaction fees. By combining commodity‑hardware expertise with high‑throughput networking, B2 Neo addresses the storage bottlenecks that often limit AI model training and inference pipelines. Neoclouds—specialized GPU‑centric platforms that deliver the latest hardware for AI workloads—require such high‑performance storage to keep pace with data‑intensive applications.
The neocloud market is projected to grow from $35.22 billion in 2026 to $236.53 billion by 2031, a compound annual growth rate of 46.37%. Backblaze’s entry with B2 Neo positions it to capture a share of this rapidly expanding segment, leveraging its long‑standing reputation for cost‑effective commodity‑hardware storage.
Strategically, B2 Neo expands Backblaze’s product portfolio beyond its core B2 Cloud Storage and Computer Backup services. The new offering diversifies revenue streams and deepens the company’s presence in the AI infrastructure ecosystem, reducing reliance on SMB backup customers and opening a path into high‑growth AI‑centric markets.
Competitive peers such as CoreWeave, Lambda Labs, and Nebius also target neocloud customers, but B2 Neo differentiates itself through its 1 Tbps throughput, zero‑transaction‑fee pricing, and the company’s proven track record of delivering high‑performance storage on commodity hardware. This combination offers a cost‑effective alternative to hyperscalers for data‑heavy AI workloads.
Backblaze’s first customer for B2 Neo is a major neocloud provider that has committed the largest total contract value to date, although the specific customer name and contract amount have not been disclosed. The announcement follows Backblaze’s Q4 2025 earnings guidance, which projected revenue of $37.3 million to $37.9 million, underscoring management’s confidence in the company’s growth trajectory.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.