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Nebius, CoreWeave and Iren fall after Musk warns on neoclouds
CNBC reported Monday that Nebius, CoreWeave and Iren each dropped more than 4% in premarket trading after Elon Musk said more than 200 neoclouds face collapse.
Shares of several companies known as neoclouds fell in Monday premarket trading after Elon Musk said more than 200 firms in the sector could fail, CNBC reported1.
Nebius, CoreWeave and Iren each dropped more than 4% before the open, according to the report1.
CNBC said the declines added pressure on a group already facing questions about debt-funded growth and whether the AI data-center build-out will produce lasting returns1.
Musk, the chief executive of Tesla and SpaceX, posted on X on Sunday that debt markets had almost entirely shut off access to money in recent weeks for companies without substantial revenue independent of AI data centers, CNBC reported1.
"That means the 200+ neoclouds are going to see guppy-level death and consolidation," Musk wrote, according to CNBC, adding that some would make it through but not many1.
CNBC described the article as a breaking news story and did not report comments from Nebius, CoreWeave or Iren, or independent figures on how many neoclouds exist1.
