neocloud The company's stock price continues to decline.

CoreWeave and Nebius have both fallen by more than 30% in the past month, mainly due to the market's growing concerns about the debts they have incurred to build more data centers.

In pre-market trading on Monday, CoreWeave fell another 5%, and Nebius fell 3%, although these declines narrowed before the market opened. Another listed company, neocloud, whose stock is represented by Iren, also saw a near 3% drop in pre-market trading on Monday.

These declines occurred after Musk posted consecutive messages on X on Sunday night, questioning the business model of neocloud.

He stated, "In the past few weeks, the debt market has almost completely cut off financing channels for any company that does not have substantial revenue independent of the AI data center."

“This means that over 200 neocloud will face mortality at the fry level and integration,” he added, “Some will survive, but not many.”

Elon Musk said that SpaceX has raised $40 billion through debt financing to purchase GPU, but the company's revenue comes from Starlink and rocket launches.

At the same time, investors are concerned that if the AI craze slows down, neocloud, which has a heavier debt burden, may find it difficult to repay its loans.

NVIDIA CEO Jensen Huang is still optimistic about this industry. Last Thursday, he told CNBC, "The demand for neocloud is astonishingly high."

NVIDIA holds CoreWeave, Nebius, and significant shares in other cloud computing companies.

However, a recent report by Bernstein Research analyzed thousands of planned data centers in the United States and estimated that only about 35% of the announced capacity will actually be built.

Bernstein analysts wrote in their research report: "Press releases are cheap... concrete is not."