Neoclouds: These firms you've never heard of are feeding fears the AI bubble could burst

Neocloud firms often finance themselves by signing long-term lease contracts with major tech customers who need quick access to computing power.

Firms can then borrow money using those contracts – plus the AI chips they purchase – as collateral, explained analyst Cory Johnson of "The Quiet Period" IPO research outfit.

He said debt is common across neocloud firms because the hardware has to be paid for up front.

Take the industry leader: CoreWeave. It's a fraction of the size of…