Neocloud Financing Concerns Spread from CoreWeave to Nebius and Applied Digital

Summary

Financial concerns surrounding CoreWeave's debt-heavy business model appear to be spreading across the neocloud sector, dragging down stock prices of competitors Nebius and Applied Digital. The so-called 'neocloud contagion' reflects growing investor skepticism about the sustainability of capital-intensive GPU cloud providers that have taken on significant financing to build out AI compute infrastructure. The neocloud segment — companies that have emerged to provide GPU-as-a-service and AI-spec