India, Oct. 26 -- Shares of major neocloud companies fell on Monday after Elon Musk warned that more than 200 companies in the artificial intelligence (AI) infrastructure sector could collapse. The warning added to investor concerns about rising debt and the high cost of building AI data centres.

Nebius, CoreWeave and Iren shares fell more than 4% in early premarket trading. They later recovered some of their losses but were still trading between 2% and 3% lower. The decline came as investors questioned whether companies investing heavily in AI infrastructure would earn enough money to cover their costs, according to CNBC.

Musk, the CEO of SpaceX and Tesla, said access to debt financing had almost completely dried up for companies that ...