00:00Shares of AI cloud companies are sliding after Elon Musk warned that hundreds of businesses in
00:05the sector could face failure or consolidation. Corweave, Nebius and Irene all fell as investors
00:12grew more concerned about the debt these companies are taking on to build data centers and buy
00:18expensive AI chips. Musk predicted that most of the more than 200 neocloud providers would not
00:24survive, citing tighter credit conditions and questions about their ability to generate
00:29enough revenue. The sell-off underscores a growing risk in the AI boom. Demand for computing power
00:36may be soaring, but not every company can afford to keep up.
