US necloud stocks fall after Musk's post on shakeout

Tesla

26/10/2026 10:08

** Shares of US neocloud companies decline in premarket trading
** CoreWeave CRWV.O down 2.5%, Nebius NBIS.O off 2.3%, set to add their recent slump
** "As of the past few weeks, debt markets have almost entirely shut off access to money for any company that doesn’t have substantial revenue independent of AI data centers," SpaceX and Tesla's CEO Elon Musk said in an X post on Sunday 
** "That means the 200+ neoclouds are going to see guppy-level death and consolidation. Some will make it through, but not many."
** He later said SpaceX won't buy any neoclouds, calling it "pointless"
** Musk was responding to an X post from venture capital investor Chamath Palihapitiya, who noted his observations on data center buildout
** "There are delays in the existing pipeline that will catch people off guard in 2027," Palihapitiya said 
** Neocloud stocks have sold off sharply in recent weeks on fears their debt-fueled AI buildout was becoming unsustainable
** CoreWeave and Nebius were not immediately available for comment 
** CRWV down nearly 25% YTD, NBIS up nearly 90% but well off its peak, IREN down 34% 

 (Reporting by Sruthi Shankar)
 ((sruthi.shankar@thomsonreuters.com;))