Musk is not wrong, though we all know what he is saying about Neocloud is not out of noble intent. His SpaceX is an obvious competitor to those Neocloud companies he is warning against.
Still, you can't deny the Neocloud business is extremely fragile. It's only business is renting Nvidia chips for use by AI generators. So if analyst are calling the entire AI industry is still early days in terms of turning an end-user profit, Neocloud companies are even further down the line in getting a piece of that profit as whatever revenue they are able to generate is only being used to pay for the massive loans they took to buy Nvidia chips.
Neocloud Stocks Slide as Musk Warns of Industry Shakeout
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