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Musk warns neocloud startups face closures as funding tightens

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Elon Musk has flagged the financial risks facing neocloud startups as raising capital becomes harder. He suggested that more than 200 of these companies could shut down or be absorbed through consolidation in the years ahead. Venture capitalist Chamath Palihapitiya argued that established hyperscalers may put their own computing needs ahead of serving third-party firms. Together, these pressures could leave excess computing capacity stranded and create inventory problems by 2027.

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