Kosh: "and so it begins"

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CoreWeave's slump spotlights growing burden of debt behind AI boom

Oct 15 (Reuters) - Shares of Nvidia-backed CoreWeave (CRWV.O), opens new tab steadied on Thursday after a sharp slump, as investors worried about the debt financing behind the artificial intelligence build-out.
The loss-making cloud company has about $50 billion in debt and has become a focus of concerns that the data-center boom is being fueled by credit, straining newer players and pressuring cash flows even at giants such as Alphabet (GOOGL.O), opens new tab and Meta ‌Platforms (META.O), opens new tab.

reuters.com - Coreweave shares bonds slide further AI debt fears mount

Elon Musk says more than 200 neoclouds face ‘guppy-level death’

Elon Musk said that more than 200 neocloud companies could collapse, sending shares in those companies whipsawing.

Nebius, Iren and CoreWeave all fell in early trading, adding pressure to a sector already facing investor concerns about debt-fueled expansion and whether the large AI infrastructure buildout will generate returns. The stocks all rebounded later in the day.

cnbc.com - Neocloud stocks today coreweave nebius iren elon musk

We all saw this with the "information superhighway" hype of 27 years ago. How much customer financing has companies like Nvidia provided, to fluff up their short term bottom line?

Debt kills.

Steve

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