Neocloud shakeout looms as Nvidia faces biggest risk

Industry executives predict consolidation among AI cloud providers, with only seven to ten of hundreds of upstarts likely to survive in a few years. CoreWeave shares fell about 20 percent after IPO plans were scrapped, and credit risk measures hit records. Major players like Nscale lost a Microsoft data center deal in Loughton, England, where power is not expected until the 2030s. Nvidia, which derives 45 percent of data center revenue from the neocloud segment, has invested heavily in supporting the industry through equity, chip allocations, and loan guarantees, but analysts doubt most providers can sustain operations.