Shares of Nebius and cloud companies fell after Musk’s words about bankruptcy

More than 200 companies that specialize in providing computing power for artificial intelligence may go bankrupt, said CEO of SpaceX and Tesla Elon Musk. He wrote about this in his post on the social network X. Against this background, shares of Nebius (NBIS), CoreWeave (CRWV) and Iren (IREN) fell by more than 4% in early pre-trading on the American exchanges on Monday, October 26, CNBC noted.

Later, the shares partially recovered losses. By 15:44 GMT, the decline in CoreWeave securities slowed to 2.68%, Iren to 2.03%, and Nebius securities rose by 0.83%.

Musk noted that in the past few weeks, debt markets have almost completely cut off access to financing for any company that does not generate substantial revenue independent of artificial intelligence data centers.

“This means that more than 200 non-cloud companies will face mass extinction and consolidation on a scale comparable to that of small fish.” Some will survive this period, but there will be few, Musk said.

Neo-cloud providers are a new generation of cloud providers that specialize in providing computing power for artificial intelligence.

The billionaire also revealed that aerospace company SpaceX has completed a deal to raise $40 billion in debt to pay for chips needed for AI projects. In his post, he explained the successful fundraising by the fact that the company has an investment rating, as well as revenues from the Starlink satellite Internet and the spacecraft launch business.

Elon Musk’s company SpaceX operates its own data centers, it sells computing power. SpaceX is a direct competitor to providers that also lease computing power to technology companies.

Musk later said that SpaceX would not buy companies working in the field of cloud technology for AI, calling it “nonsense.”.

Over the past month, shares of cloud providers for artificial intelligence have fallen sharply in price: securities companies CoreWeave and Nebius, according to CNBC, fell by more than 30%, and Iren – by 40%. The sale started earlier this month. Investors were concerned that companies were taking out large loans to finance the purchase of expensive Nvidia chips, the construction of data centers and the leasing of computing capacity to technology companies.

Elon Musk’s SpaceX in June held the largest IPO in history, during which it was estimated at $ 2 trillion. Revenue SpaceX in the third quarter of 2026 rose 161%, to $ 14.6 billion, on the back of deals on the lease of data centers. SpaceX's net profit for July-September was $4.4 billion, compared with a net loss of $1.1 billion last year. Revenue from the sale of cloud computing services for artificial intelligence rose ninefold, to $7.6 billion from $813 million a year earlier, and tripled from $2.56 billion in the previous quarter.