Shares of AI-related US companies dropped again on Friday, with neoclouds among the worst hit, fueled by fresh jitters over AI financing following Nvidia CEO Jensen Huang’s abrupt exit.
\n\nThe tech-heavy Nasdaq-100 declined 2%, on pace to erase about $800 billion in market value if the losses hold through the close. The Philadelphia SE Semiconductor index also shed 5.1%, facing a more than $560 billion wipeout for the day.
\n\nCoreWeave and Nebius Group, neocloud firms backed by Nvidia, slumped 8.8% and 9%, respectively, extending their sharp declines from Thursday when longtime CEO Huang stepped down after revelations of extramarital affairs.
\n\nNvidia, under Huang, has financed infrastructure built around its chips, a strategy that has driven demand but also raised questions about circular funding flows between the chipmaker and its customers.
\n\n“It’s a short-term death blow to the industry because the amount of vendor financing and financing guarantees that Nvidia and Jensen Huang stepped into are now over,” said Thomas Hayes, chairman of Great Hill Capital LLC.
\n\nFurther, Nscale, a British cloud provider also backed by Nvidia, amended its IPO filing to say it expects to report a net loss of $1.7 billion in the nine months ended September 30, wider…
Original source: https://www.cnbctv18.com/technology/
