JPMorgan Asset Management’s Oliver Cox says rising interest rates have piled pressure on cash-burning neoclouds and thrown their business models into doubt.
Investment giant JPMorgan Asset Management says neoclouds such as Firmus, Nscale, and CoreWeave must transform their debt-hungry business models if they are to survive in a higher interest rate environment.
Portfolio manager Oliver Cox, who covers the technology sector in the Asia Pacific for the $US4.8 trillion ($6.8 trillion) money manager, said the neoclouds had to move away from relying on debt to fund their expansion.
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AI data centre developer Firmus Technologies has appeared before a parliamentary inquiry and given assurances it will only use diesel generators in times of emergency.
