# Elon Musk says more than 200 neoclouds face 'guppy-level death' as stocks fall

> Original title: Elon Musk says more than 200 neoclouds face 'guppy-level death'

- Source: CNBC · Technology
- Published: 2026-10-26T09:07:53.000Z
- Bad Influence: https://badinfluence.news/items/f71wtixgzl7svnsyortx4bxya
- Original: https://www.cnbc.com/2026/10/26/neocloud-stocks-today-coreweave-nebius-iren-elon-musk.html

## Summary

SpaceX CEO Elon Musk said on X that debt markets have nearly shut off funding for neoclouds without substantial revenue outside AI data centers, predicting that most of the more than 200 companies will consolidate or fail. Nebius, CoreWeave, and Iren fell more than 4% in premarket trading, after CoreWeave's credit default swap spreads hit distress levels and its bond yields rose. Musk's comments were a reply to Chamath Palihapitiya, who expects partially stranded compute in 2027.