Neocloud short sellers rack up $6 billion as AI debt fears deepen
Short sellers betting against US neocloud and data centre companies have made about $6 billion in paper profits this month as AI debt fears trigger a sharp selloff. CoreWeave, Nebius, IREN, Applied Digital and Core Scientific face heavy short interest, highlighting growing concerns over debt-fuelled AI infrastructure spending.
Short sellers betting against US neocloud and data centre companies have accumulated about $6 billion in unrealised profits this month as concerns over debt fuelled AI spending trigger a sharp selloff across the sector, Reuters reported.The pressure has been particularly strong in companies seen as major beneficiaries of the AI infrastructure boom, with investors increasingly questioning whether aggressive data centre expansion can be supported by rising debt.US MarketsPowered ByAs on 22 Oct 2026, 11:27 PM ISTS&P 500 Top GainersPool189.77(10.05%)Roper Technologies436.69(9.84%)Allegion174.32(9.64%)Lennar83.56(7.54%)Gainers»S&P 500 Top LosersModerna183.07(-25.52%)Lam Research232.31(-10.93%)GE Vernova824.91(-10.91%)Vistra140.29(-10.15%)Losers»CoreWeave, Nebius face heavy short betsShort interest in CoreWeave, IREN, Nebius Group, Applied Digital and Core Scientific stood between about 20% and 26% of their free floats, according to data analytics firm ORTEX, cited by Reuters.CoreWeave has seen its short interest rise to 23.7% of free float, from 19.6% at the start of October.
