That means the 200+ neoclouds are going to see guppy-level death and consolidation. Some will make it through, but not many.
in a post on X on Sunday
Investors are already questioning the debt-fueled expansion of neoclouds and whether the large AI infrastructure build-out will generate long-term returns.
CNBC“Some of them look very impressive, but they're not really using any kind of advanced AI or SI.”
“Now, Elon Musk and other leaders say they expect physical bottlenecks, including a shortage of electricity needed to power data centers, to slow down competitors.”
“Musk claimed in a post on X that Ukraine violated Starlink terms of service by using the technology for “offensive drone strikes to kill people.””
“Our AI infrastructure and solutions are the major drivers for Cloud growth and our customers see us as the leading provider here, so there’s huge demand.”
“After shares of CoreWeave sold off, he noted that he's optimistic about the company's future and that its cost of capital was actually going down.”
“AWS is a $184 billion annualized revenue run-rate business, and yet the opportunity remains extraordinary. With our continued pace of innovation, new core and AI functionality, enterprises…”