Investor Skepticism: Stranded Compute and Demand Risks

Investors are concerned that 2027 will reveal a surplus of 'stranded compute'—capacity that is paid for but under-earning. While some neocloud executives maintain that demand for AI capacity remains strong for 2027 and 2028, these arguments do not address the broader market concern regarding the viability of debt-fueled business models in a high-interest or capital-constrained environment.

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