Greg Stanton responded to criticism regarding the slowdown in investment in artificial intelligence on September 14. He stated that the risks of the AI industry are exaggerated, noting that a reduction in development could benefit existing companies and limit competition. However, AI-related stocks sold off despite these remarks.
CoreWeave and Nebius Status
CoreWeave, Inc. (NASDAQ:CRWV) and Nebius Group N.V. (NASDAQ:NBIS) are recognized as direct tests in the discussion of AI costs. CoreWeave continued its operations at the end of the second quarter with about $104 billion in deferred revenue, and its quarterly revenue more than doubled to $2.58 billion. This gives CoreWeave a clear view if the proposed reduction relates to safety procedures.
Read more: Greg Stanton: The Slowdown in AI Development is Not Enough
In contrast, Nebius reported that its second-quarter revenue reached $582.3 million, a 454% increase, and its adjusted EBITDA was $236.2 million. The company also announced that its customer commitments exceed $40 billion, but its capital expenditures have reached about $5.7 billion.
Financial Challenges and Capital Structure
CoreWeave spent $9.4 billion on capital expenditures in the second quarter and recorded a net loss of $626 million. With a debt of $35.6 billion, the company faces serious financial challenges. In contrast, Nebius has seen an increase in ownership from 60 to 86 investment funds, indicating interest in the company.
As of August 31, about 45 million shares of Nebius were short-sold, equivalent to 17.89% of its market volume. However, this figure should be considered a neutral vote as it includes structural covers.
Stanton emphasizes that if leading AI companies merely direct their costs toward inference and implementation, the contractual capacities of neocloud can still be valuable. However, if these warnings genuinely signify a reduction in computational growth, CoreWeave and Nebius have less room to hide.
Read more: SK Hynix is in Talks with Intel for Memory Chip Production in the U.S. · Greg Stanton: Four Horsemen Threatening the Current Bull Market
