Recent volatility in hyperscaler and neocloud stocks reflects growing investor anxiety about potential regulatory hurdles for data center expansion. Democrats' push for tighter AI oversight and construction pauses has fueled uncertainty, with some analysts suggesting broader moratoriums could emerge early next year. Anthropic CEO Dario Amodei's warnings about AI risks have reinforced this narrative, adding to the market's apprehension.
The week saw several developments that weighed on AI stocks. Microsoft's decision to scale back its AI cloud rental agreement with Oracle, along with ING's attempts to sell $500 million in data center loans, signaled a shift in investor sentiment. OpenAI's revised 2027 capacity plans and the downward revision of Anthropic's pre-IPO valuations further underscored the sector's fragility.
SoftBank's Ohio data center project, which includes 9.2 gigawatts of natural gas-fired power generation, is now under scrutiny. While SoftBank's spokesperson confirmed turbine reservations in May, Musk's accusation of default has raised questions about the project's viability. The first 800 megawatts of capacity for OpenAI in Ohio are expected to come online in 2028, but delays could impact rental income and expose SB Energy to financial risks.
Musk's claim, though unsupported by evidence, has already triggered market reactions. SoftBank's credit default swap spread hit a five-month high, indicating heightened risk perception. With $64.6 billion already invested in OpenAI, any further setbacks could have significant implications for the AI sector. Analysts warn that if developers cancel or defer orders, turbine supply constraints could ease, but this may come at the cost of delayed projects and financial strain on key players.