Post by @thisismoney

ELON MUSK WARNS MORE THAN 200 AI COMPANIES COULD FACE COLLAPSE AS FUNDING DRIES UP. The billionaire has warned that more than 200 specialist AI cloud computing companies could face financial difficulties or be forced to merge as lenders become increasingly reluctant to finance businesses heavily dependent on artificial intelligence data centres. Musk described the potential industry shake-up as “guppy-level death”, suggesting only a small number of companies would survive. Musk said his own company, SpaceX, had secured £30 billion in debt financing to purchase AI chips, helped by revenue from its Starlink satellite internet service and rocket launches. He argued that companies relying almost entirely on AI data centres for income would struggle to secure funding as the cost of building and operating the infrastructure continues to rise. #ThisIsMoney #Money #News #UK