Debt-laden 'neocloud' firms stoke fears of an AI bubble

Little-known data centre firms such as CoreWeave and Nebius, which lease computing power to AI developers like OpenAI, Anthropic and Meta, are under scrutiny over their finances. Many borrow heavily against long-term contracts and chips. Gartner predicts 80% of such neocloud firms will cease independent operations by 2030, while US Treasury Secretary Scott Bessent downplayed the concerns.