Musk calls neocloud deals pointless, shares of Nebius, CoreWeave, Iren fall

Elon Musk announced that SpaceX will not acquire neocloud providers, calling such deals pointless, which caused shares of Nebius, CoreWeave, and Iren to drop over 4% in US premarket trading. Musk responded to venture investor Chamath Palihapitiya's post, arguing that debt markets are reluctant to lend to companies whose revenue depends almost entirely on AI data centers. He predicted over 200 neocloud firms face extinction or consolidation, with few survivors. SpaceX recently closed a $40 billion debt financing deal for GPU purchases, backed by its investment-grade rating and stable Starlink and launch revenues. The company operates its own data centers, directly competing with neocloud providers that rent computing power.