Neocloud shakeout looms, and Nvidia has a lot to lose

Investors are worried about the risks taken by young AI cloud providers: CoreWeave is piling on debt, Firmus abruptly pulled its IPO and Nscale is going public without much of a track record. Shares of CoreWeave and smaller rivals fell around 20%, and the concerns even hit larger AI cloud providers like Oracle.

• CoreWeave and smaller neocloud shares fell around 20%
• Firmus abruptly pulled its public offering last week
• Nscale is pursuing an IPO without a long track record
• Nvidia invests in and backstops many neoclouds