New Delhi, Oct. 26 -- SpaceX CEO Elon Musk has warned that more than 200 specialised artificial intelligence (AI) cloud companies could face widespread business failures and consolidation as debt financing becomes increasingly difficult for firms that depend heavily on AI data centres for revenue.

In a post on social media platform X, Musk said lenders had become reluctant to provide funding to companies without substantial revenue from businesses outside AI data centres, highlighting growing financing challenges for the capital-intensive AI infrastructure industry.

"As of the past few weeks, debt markets have almost entirely shut off access to money for any company that doesn't have substantial revenue independent of AI data centers," ...