Musk says more than 200 neoclouds face 'guppy-level death'
Elon Musk said on X that more than 200 neoclouds are "going to see guppy-level death and consolidation." CoreWeave and Nebius are down more than 30% over the past month, after the spread on CoreWeave's five-year credit default swaps hit levels generally viewed as signs of distress.
NoteMusk's SpaceX sells computing capacity and is a direct competitor to the neoclouds, according to CNBC. Musk said debt markets have almost entirely shut off access to money for companies without substantial revenue independent of AI data centers.
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