AI Neoclouds Lose Their Luster as IPOs Stall and Stocks Sink

The tide is turning on neoclouds, the business segment that emerged over the past few years to supply the vast amounts of data center computing needed to power artificial intelligence systems. Investors are showing signs of losing faith in the model. The latest evidence came from Elice Inc., a South Korean AI computing supplier that was scarcely known outside its home market until this week, which tanked 32% in its debut in Seoul on Tuesday. The steep first-day drop underscored how quickly sentiment has shifted toward the companies that provide AI computing capacity. Bloomberg's Mandeep Singh breaks down the development on Bloomberg Intelligence, explaining what the Elice flop signals about the neocloud segment, its stalled IPO prospects, and the sinking stocks tied to the AI infrastructure trade.