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00:02Shares of major neocloud companies fell Monday after Elon Musk warned that more than 200
00:07companies in the sector could face collapse and consolidation, according to CNBC. Nebius,
00:13CoreWeave, and Iren dropped more than 4% in early pre-market trading before pairing losses
00:19to between 2% and 3%. Musk said debt markets have largely shut off funding
00:25to companies without substantial revenue outside AI data centers. His warning followed
00:30concerns from social capital founder Shamath Palihapitiya about excess computing capacity
00:36in 2027. CoreWeave and Nebius have lost more than 30% over the past month, while Iren has fallen 40%.
00:44NVIDIA CEO Jensen Huang defended the sector, saying demand remains strong,
00:50but access to capital is limited.
00:52For all things money, visit Benzinga.com.
