Author: IBL News

IBL News | New York

Elon Musk predicted that many companies tied to the AI boom will not survive, as they’ve been effectively shut out of the debt market.

Musk stated that companies that sell computing power to AI companies are at risk — the so-called neoclouds. He wrote on social media that many of them face “guppy-level death and consolidation.”

Essentially, Musk thinks that a looming credit bottleneck will wipe out a slew of tech companies.

For example, shares in CoreWeave, which counts Anthropic and Microsoft as customers, were sold off sharply last week and are down again. CoreWeave’s credit default swaps, a measure of credit risk, are up as investors worry about the borrowing binge driving the A.I. build-out.

His social media remarks come as hyperscalers’ earnings are under scrutiny, and details about Anthropic’s upcoming IPO may point to troubling financial results.

However, he said his $2 trillion company, SpaceX, is well cushioned by its investment-grade credit rating and booming Starlink internet business.

He underscored that point on Sunday by announcing that SpaceX had just landed a $40 billion debt deal to buy more chips, including from Nvidia.

Pretty much.

As of the past few weeks, debt markets have almost entirely shut off access to money for any company that doesn’t have substantial revenue independent of AI data centers.

SpaceX closed $40B of debt for GPUs, but we’re investment grade and have Starlink & launch revenue.

That means the 200+ neoclouds are going to see guppy-level death and consolidation. Some will make it through, but not many.

— Elon Musk (@elonmusk) October 25, 2026

IBL News | New York

Canva released its first image-generation model, Canva Craft, to compete with similar offerings from Google, OpenAI, ByteDance, and Meta.

Canva Research, its in-house AI lab, developed and trained the model specifically for design. It’s available in Canva and via its public API for developers, and the Canva MCP Server.

Craft generates high-quality images at 2K resolution in any aspect ratio, ranking, according to the design company, as “#1 spot globally for both People & Portraits (out of 87 models) and Landscapes & Nature (out of 85 models); and #2 for Abstract & Patterns and #4 for Products.”

The company noted that, rather than using photographs, it trained the model on human-designed templates from Canva’s library, including posters, social posts, presentations, infographics, menus, and typography-rich layouts.

That means Canva Magic can convert images generated with Canva Craft into layered designs using the company’s image-to-design transformer.

“Unlike conventional image generation models that generate pixels directly from a prompt, Craft uses a two-stage architecture that separates compositional planning from image rendering. This allows the model to reason about the structure of an image before generating it, delivering greater precision, consistency, and control over the final output.”

“The same underlying structure makes Craft outputs particularly well suited to Canva’s Magic Layers, which can transform generated images into fully editable design elements.”

Canva said it is developing two cost-efficient versions of the model, Craftfast and Craft-ultrafast, which it will release soon.

In 2024, Canva acquired media generation platform Leonardo.ai. It said that the researchers from Leonardo contributed to the new image model.

The company, with over 250 million users worldwide, was on track for $4 billion in revenue last year. However, it cut its 2026 growth forecast, reportedly causing its valuation to plummet from $42 billion to $35 billion.