Investor goes bearish on CoreWeave and Neoclouds: a 1-2 year buildout lag means $5-10B cash disadvantage
JOBhakdi · x · 2026-10-25
An investor publicly declares he is generally bearish on Neoclouds like CoreWeave. While demand for compute is effectively unlimited, he argues they cannot compete with SpaceX's speed in setting up datacenters — being one to two years slower in buildout creates a $5-10B cash cost disadvantage he doesn't think they can survive. He concedes some might pull off a miracle but won't invest in uphill battles.
More from Venture
- Chart: Data centers funded via SPV structures keep hyperscaler debt off balance sheet — SumitGup · 2026-10-26
- Solidigm pulls IPO as neocloud credit spreads blow out before hyperscaler earnings — perspicacity_ai · 2026-10-26
- Goldman's Jim Covello: nearly all AI money flows to chipmakers and it's "completely unsustainable" — matt_slotnick · 2026-10-25
- SaaS Apocalypse: dev curates open-source alternatives to Notion, Slack, Auth0 — matchaman11 · 2026-10-25
- VC moat discourse is justifying 2-and-20 fees, argues AI founder debate — matt_slotnick · 2026-10-25
- Redditor tallies top-11 AI debt: $650B on-book, $3.5T off-book AI commitments — mynameiswearingme · 2026-10-25