Musk and Jensen Huang Clash? JPMorgan Says It's Market Consensus That Hyperscale AI Data Center Operators Are in Good Shape

Odaily: SpaceX CEO Musk has issued a latest warning that more than 200 new cloud companies will collapse or merge on a large scale; some companies will survive, but not many. Musk's warning is almost diametrically opposed to the earlier view of NVIDIA CEO Jensen Huang. Last week, at GTC, Huang noted that market demand for new clouds far exceeds expectations. Although he also mentioned that new cloud companies are in urgent need of funding support and that funding is facing a shortage, he believes this problem will definitely be resolved.

Jefferies analysts noted that Musk's remarks triggered a new round of panic trading. JPMorgan, however, believes that the AI debt market has become more selective about AI infrastructure, but is dismissive of a broader financing crisis. JPMorgan's market intelligence team emphasized that the credit shortage is concerning, but the current consensus is that hyperscale data center operators are in good shape, large operators will continue to dominate, and the return on investment for smaller businesses, including new cloud service providers, also remains positive. (Cailian Press)