Elon Musk Says 200+ AI Cloud Firms Face Wipeout: Will CoreWeave Survive?
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Elon Musk says that lenders have almost entirely stopped funding companies that earn their money only from AI data centers. He predicted most of the 200-plus AI cloud firms will fold or be bought. The warning lands as CoreWeave (CRWV), the largest listed AI cloud firm, pays record rates on its debt. Musk’s own SpaceX, meanwhile, says it just closed $40 billion of borrowing. Can CoreWeave Survive Its Debt Bill? These firms, known as neoclouds, buy Nvidia chips and rent the computing power to AI developers. Most borrow heavily to do it. Musk did not name CoreWeave this weekend. However, on October 14 investor Chamath Palihapitiya shared a chart of a CoreWeave bond yield passing 15% , and Musk replied “Yikes.” CoreWeave is the sector’s bellwether, with a reported $50…
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