The Dark Side of AI's Cloudy Future BCA Research strategist Noah Weisberger has issued a warning about the unsustainable debt taken on by neocloud companies like CoreWeave (CRWV) and Nebius (NBIS), which are building commoditized computing services with razor thin profit margins.
This is not just a problem for these specific companies, but also a symptom of a broader issue in the tech industry's current trajectory.
The rapid growth of AI cloud companies has led to unprecedented investment, much of it fueled by borrowed money.