Elice Group, the South Korean AI services firm, raised about $150 million at the top of its range with the retail tranche 400 times oversubscribed, then fell 32% on its first day of trading. It had posted an operating profit and tripled first-half revenue. HSBC cut CoreWeave to reduce the same morning, arguing neoclouds will earn roughly $12 million per megawatt a year in 2027 against $17 to $18 million for the hyperscalers. And Business Insider reports Amazon is now taking delivery of Nvidia chips before it has data centers with the power to run them. Jake Conley, Julie Hyman and Pras Subramanian on an AI buildout investors have stopped funding on faith.
Featuring
Jake Conley, Breaking Business News Reporter, Yahoo Finance
Julie Hyman, Host, Yahoo Finance
Pras Subramanian, Senior Autos Reporter, Yahoo Finance
Watch the full episode of The 8:30: https://youtu.be/PLACEHOLDER-REPLACE-BEFORE-POSTING
Timestamps
0:00 A Korean AI listing drops 32% on its first day
1:03 This is about sentiment rather than this company
1:20 Everyone who was in got out
2:10 Why nobody wants to take a neocloud public right now
2:45 HSBC turns on the neoclouds with a rare reduce rating
3:22 Twelve million per megawatt against eighteen
4:07 The bull case, and what the debt spike does not mean
5:09 It was profitable and it sold off anyway
5:28 Amazon is ordering chips before it has somewhere to put them
6:28 Power is the constraint, not demand
6:55 “You’ve taken us free cash flow negative, so congratulations”
7:51 The same bet Amazon made on cloud and on delivery
#AIStocks #CoreWeave #Amazon #The830 #YahooFinance
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