Microsoft is scaling back the number of neocloud providers it works with, including CoreWeave, Nebius, Chronoscale, IREN, Lambda and Nscale, according to people familiar with the matter. The company has not yet decided which partners to cut but is reportedly favoring its own data center buildout, and two sources said Microsoft chose not to renew a deal with Oracle. Microsoft said its infrastructure approach relies on a mix of owned, leased and third-party capacity that it reviews regularly against customer demand.
cnbc.com
· 2026-11-06
Tech and AI-linked stocks dropped sharply this week after Democrats' strong midterm showing, with Nvidia, AMD, Microsoft, Micron, Broadcom, Tesla and SpaceX all posting steep losses on Thursday. Neocloud providers Nebius, Iren and CoreWeave were hit even harder, falling between 10% and 17%, before U.S. tech shares showed partial recovery Friday morning. Analyst Kyle Rodda of Capital.com linked the slide to investor concern over potential tech regulation under a Democrat-controlled Congress, plus dozens of local ballot measures across 10 states targeting data center construction.
cnbc.com
· 2026-11-06
CNBC's Jim Cramer said Thursday's slide in AI-related stocks, which saw Micron fall 17%, GE Vernova drop 7% and Sandisk plunge 22%, likely isn't finished. He attributed the declines to rising local opposition to new data centers after the midterm elections, which has raised doubts about continued AI infrastructure spending, but said he does not view this as a repeat of the dot-com crash since most affected companies are profitable.
cnbc.com
· 2026-11-05
Anthropic reported Q3 revenue of $16.8 billion to investors, up from $11.6 billion in Q2 and $4.8 billion in Q1, according to the New York Times. While the sequential dollar increase of $5.2 billion remains large, it is smaller than Q2's $6.8 billion gain, marking a deceleration in growth rate from 141% to 45% quarter-over-quarter.
regenerator1.com
· 2026-11-02
The Wall Street Journal reports that major AI companies are investing in smaller startups that use the same funds to buy services back from those large firms, creating interlinked financial dependencies. The report notes Alphabet recently suffered its largest-ever single drop in market value, wiping out more than half a trillion dollars, while data-center operator CoreWeave has also seen declining shares over recent months.
futurism.com
· 2026-11-02
Neocloud companies like CoreWeave and Nebius, which lease computing capacity to AI developers such as Anthropic, OpenAI and Meta, have become a focal point of investor anxiety over the AI sector's financial health. Gartner projects 80% of neocloud firms will stop operating independently by 2030, while Forrester expects at least three to be acquired soon as their finances weaken. Treasury Secretary Scott Bessent pushed back on the concerns, telling CNBC that neoclouds are only a small, external part of the broader economy.
bbc.co.uk
· 2026-11-01
Microsoft spent $45.2 billion on capital expenditures in the September quarter, below the $51.7 billion Wall Street expected, and trimmed its calendar 2026 spending forecast from $175 billion to $170 billion. CFO Amy Hood attributed the shortfall to delayed capacity deliveries from third-party partners rather than a pullback, with spending expected to accelerate once those facilities come online later in the fiscal year.
techspot.com
· 2026-10-29
Microsoft reported $45.2 billion in quarterly capex and finance leases, below the $50.7 billion analysts expected, while Alphabet's capex of $51.36 billion also fell short of the $55.09 billion forecast. Shares of neocloud firms CoreWeave and Nebius dropped nearly 5% and IREN fell about 3% in extended trading following the reports.
cnbc.com
· 2026-10-28
Jim Cramer told CNBC viewers Tuesday that the two-day rally in AI stocks, sparked partly by a $63 billion financing package from banks and Blackstone backing Anthropic's purchase of Broadcom hardware, doesn't mean risks to the data-center trade have passed. He flagged continued borrowing stress at smaller 'neocloud' infrastructure firms like CoreWeave, Nebius and Iren, and questioned why Anthropic is financing its hardware purchases with debt rather than its own profits.
cnbc.com
· 2026-10-27
General Compute has closed a $100 million Series A led by Blackbird Ventures and Abstract Ventures, valuing the startup at $800 million post-money, up sharply from a $60 million valuation after its May seed round. The raise follows a $100 million annual recurring revenue deal with a large customer and a $400 million debt-financed purchase of inference chips from SambaNova, with Positron and Cerebras also added as chip suppliers.
techcrunch.com
· 2026-10-27
Apollo Global Management's chief economist Torsten Slok wrote in a weekend note that revenue per worker and profit margins are rising only for the 'Magnificent Seven' tech giants, while remaining flat across the rest of the S&P 500. He concluded there is still no evidence AI is boosting productivity growth or financial results for companies outside the tech industry.
futurism.com
· 2026-10-26
Elon Musk said on X that more than 200 'neocloud' companies could face mass failure and consolidation, citing tightening debt markets that now favor firms with revenue beyond AI data centers. Shares of Nebius, CoreWeave and Iren fell more than 4% in premarket trading Monday before paring losses. Musk's comments came in response to a post from Social Capital founder Chamath Palihapitiya, who warned of stranded, underutilized compute capacity emerging by 2027.
cnbc.com
· 2026-10-26
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