Investors are already questioning the debt-fueled expansion of neoclouds and whether the large AI infrastructure build-out will generate long-term returns. Elon Musk has warned that more than 200 AI neocloud companies could face financial difficulties, shutdowns or mergers as lenders tighten funding for expensive AI infrastructure projects. As the AI gold rush meets harsh financial realities, Musk's warning makes one thing clear: in the costly race for artificial intelligence, only the well-funded.