Calpers pulls back from big tech as AI jitters deepen neocloud sell-off

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• Neocloud stocks fall as Elon Musk says more than 200 of them face 'guppy-level death'

  Shares of Nebius, CoreWeave and Iren fell more than 4% in premarket trading after Elon Musk said on X that more than 200 companies in the sector could collapse. Musk said debt markets have almost entirely shut off funding for firms without substantial revenue independent of AI data centers, and that the 200+ neoclouds face "guppy-level death and consolidation." He was replying to Chamath Palihapitiya, who warned of partially stranded compute in 2027. Over the past month, CoreWeave and Nebius have fallen more than 30% and Iren has tanked 40%, after the spread on CoreWeave's five-year credit default swaps reached levels generally viewed as signs of distress.

  CNBC·26/10, 09:04▼ NVDANVDACoreWeaveElon Musk
• More pain may be coming for the AI trade. Why I’m not giving up on it

  The author argues the AI trade is collapsing, using Meta as an example: a large earlier rally has largely faded after the company announced a huge prospective capital raise to fund infrastructure it had expected to self-fund. He asks whether Microsoft, Alphabet or Amazon could face similar pressure, and names consumer staples such as Kimberly-Clark, Coca-Cola and Procter & Gamble as alternatives. The article also cites local opposition to data centers over water use and electricity rates, and Nvidia's support for neoclouds such as CoreWeave, Nebius and Iren, which buy its chips. CoreWeave's stock fell sharply over its high-yield debt, and its ability to service that debt was questioned as funding from the prospective IPOs of Anthropic and OpenAI remained unclear. The author maintains that AI is not going away.

  CNBC·25/10, 21:13▼ NVDA▼ QQQAI investmentartificial intelligenceNVDA
• CRWV Stock Warning: Why Bernstein Says CoreWeave Shares Haven’t Bottomed Out YetYahoo Finance·25/10, 21:13▼ NVDACoreWeaveNVDAcloud computing
• Jensen Huang Says Nvidia GPUs Could Last Over 8 Years, Not 4, Carry ‘Really High’ Residual Value: ‘Lowest Risk’ Assets for Lenders

  Nvidia CEO Jensen Huang said the company’s AI computing systems could last eight years or longer, rather than the four-year replacement cycle commonly assumed by investors and lenders. In an interview with Yahoo Finance at GTC Berlin, he argued the systems hold “really, really high” residual value and carry the lowest underwriting risk of any asset, so they could eventually serve as loan collateral, though markets have not fully reflected this. The article notes that AI cloud providers such as CoreWeave are borrowing billions against Nvidia GPUs, and that in August Nvidia announced partnerships with firms including Apollo, BlackRock, Goldman Sachs and KKR to mobilize more than $500 billion in third-party capital. Investor Michael Burry criticized the plan as a “Wall Street stunt,” questioning Nvidia’s 25% stakes and residual-value guarantees.

  Yahoo Finance·24/10, 11:30▲ NVDANVDAartificial intelligencedata centers
• On the ground at Nvidia's AI showpiece: Jensen-mania, robot ducks and neocloud distress

  At Nvidia's GTC in Berlin, Jensen Huang met world leaders and announced new products, while public neocloud stocks sold off, with CoreWeave down 10% and Nebius down 7% at the close amid concerns over heavy borrowing. Huang said demand for neoclouds remains extremely strong, though many people at the event were worried about companies with no credit rating. Huang announced a product that packs seven Vera Rubin AI racks into a shipping container designed to travel on normal roads, aiming to bring data centers online faster. Goldman Sachs estimates AI-related capital spending could total $7.6 trillion from 2026 through 2031, and Huang said a 1 gigawatt data center costs about $50 billion. Huang argued that capital demand far exceeds supply but that this will be solved, while one financing executive warned that capital could soon become the bottleneck.

  CNBC·23/10, 12:08• NVDANVDAartificial intelligencedata centers
• CoreWeave set off a wave of anxiety — but Wall Street's dire prognosis is prematureMarketWatch·22/10, 22:54• NVDACoreWeaveNVDAartificial intelligence

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