Elon Musk says neoclouds are cooked, and SpaceX won't be buying them
Source: Business Insider ·
The SpaceX CEO said many neoclouds will face "guppy-level death" because they lack alternative streams of revenue.
From the source
Elon Musk said neoclouds are going to see "guppy-level death."Win McNamee/Getty ImagesElon Musk is not a fan of neoclouds, which are specialized cloud companies that provide compute for AI.He said many neoclouds will face "guppy-level death" and SpaceX would not be buying any of them.Musk replied to Chamath Palihapitiya, who said neoclouds are "disorganized and poorly capitalized."Elon Musk is a neocloud doomer.The SpaceX CEO took a hard stance on the future of neoclouds — cloud companies like CoreWeave and Nebius, that specialize in providing computing power for AI — in a Sunday X post.He wrote that debt markets are reluctant to finance any company that relies almost entirely on AI data centers for revenue. He said SpaceX has secured $40 billion in debt to buy GPUs, but unlike neoclouds, his company earns revenue from its Starlink and rocket-launch activities."That means the 200+ neoclouds are going to see guppy-level death and consolidation," he wrote. "Some will make it through,…