Shares of major neocloud stocks fell on Monday after Elon Musk said that more than 200 companies in the sector could collapse. Nebius, CoreWeave, and Iren all dropped more than 4% in premarket trading. Musk stated on X on Sunday that debt markets have almost entirely shut off access to money for any company without substantial revenue independent of AI data centers, which means many neoclouds will face consolidation and failure. Investors are already questioning the debt-fueled expansion of neoclouds and whether the large AI infrastructure build-out will generate long-term returns.