New Delhi, Oct. 28 -- Elon Musk recently warned that more than 200 neocloud companies are going to see what he described as 'guppy-level death' and consolidation. "Some will make it through, but not many," Musk, the founder of xAI, said further in an X post.

Even as Musk's own xAI is pushing forward with its expansion plan to increase the AI data centers by 7x to 10GW by late 2027, the world's richest man noted that it is becoming increasingly difficult for companies to find the funds.

"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," Musk said.

Neoclouds are AI-first cloud providers that rent out high-performance ...