Musk predicts neocloud shakeout as debt markets tighten

Elon Musk said debt markets have shut off funding for companies without revenue outside AI data centers, predicting "guppy-level death and consolidation" for 200+ neoclouds. Gartner estimates 80% could cease independent operations by 2032, while CoreWeave debt yields 15–16%.

• Musk: 200+ neoclouds face "death and consolidation"
• CoreWeave debt now yields 15–16%
• Gartner: 80% of neoclouds may fold by 2032
• Nscale faces lower valuation expectations at IPO