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Elon Musk warned more than 200 AI cloud companies are headed for mass failure

Musk said debt markets have cut off funding for firms that depend on AI data centers, and neocloud stocks fell Monday

Brendan SMIALOWSKI / AFP

Elon Musk, the CEO of SpaceX and Tesla $TSLA, predicted in a post on X $TWTR on Sunday that the more than 200 neocloud companies will see “guppy-level death and consolidation.” “Some will make it through, but not many,” he wrote.

Neoclouds, such as CoreWeave and Nebius, rent out computing power for AI. Musk said "debt markets have almost entirely shut off access to money for any company that doesn't have substantial revenue independent of AI data centers."

Musk also said SpaceX had “closed”........

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