These firms you've never heard of are feeding fears the AI bubble could burst

Analyst Cory Johnson of The Quiet Period noted that CoreWeave has accumulated $35.1bn (£26.3bn) in debt, financed partly against contracts with major clients and chip collateral. While CoreWeave chief executive Mike Intrator described market reactions as irrational, analysts warn of industry-wide vulnerability. Gartner predicts that 80% of neocloud firms will cease independent operations by 2030, and Forrester expects at least three acquisitions soon as finances weaken.

The sector's exposure became clearer after Microsoft and Google forecast lower AI spending than Wall Street projected, driving down neocloud shares. In addition, Microsoft recently cancelled a contract with UK firm Nscale over power supply concerns, and Australia's Firmus paused its plans for an initial public offering. In a social media post, Elon Musk suggested over 200 neoclouds could face consolidation and failure, while US Treasury Secretary Scott Bessent downplayed the sector as a small part of the broader ecosystem.