Nebius buoyed by surging demand for AI infrastructure
Nebius Group reported a sharp increase in quarterly revenue, which nearly octupled y-o-y, driven by robust demand for artificial intelligence infrastructure and cloud services. Shares in the Dutch-based "neocloud" specialist jumped approximately 16% during trading, following the announcement. Revenue for the quarter ended March reached $399m, up from $50.9m a year earlier, beating analyst expectations according to LSEG data.
The company is now significantly accelerating its capital expenditure to meet the growing demand for AI-related computing power. Nebius raised its annual capex guidance to a range of $20bn to $25bn, up from its previous forecast of $16bn to $20bn. The group, whose client base includes Meta and Microsoft, notably provides Nvidia GPUs and computing platforms to developers. CEO Arkady Volozh indicated that multiple customers were competing for every GPU brought online, highlighting the group's demand visibility through 2027.
Investments in data centers and equipment caused quarterly capex to soar to approximately $2.5bn, compared to $544m a year earlier. Nebius is also pursuing expansion through acquisitions and long-term contracts, including the purchase of startup Eigen AI for approximately $643m and an agreement with Meta that could reach $27bn over five years. The group also announced the opening of a new site in Pennsylvania capable of eventually supporting 1.2 gigawatts of power capacity.
Nebius Group NV is a Netherlands-based infrastructure company operating in the technology industry. The Company is engaged in developing a portfolio of artificial intelligence-related technology assets. It is involved in creating an artificial intelligence-centric player to integrate the essential elements of artificial intelligence development with infrastructure, data and advisory globally. It offers products and services such as a cloud platform for artificial intelligence-related workloads, development team services for autonomous vehicles, development of generative artificial intelligence. Nebius builds full-stack infrastructure to service the growth of the global AI industry, including GPU clusters, cloud platforms and tools and services for developers. Company is developing three other businesses that operate under their own brands: Toloka AI, TripleTen and Avride.
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