AI cloud firm Nebius posts massive revenue growth
Nebius Group reported a sharp rise in quarterly revenue on Wednesday, fueled by booming demand for artificial intelligence infrastructure and cloud computing services.
The Amsterdam-based company said revenue for the first quarter climbed nearly eightfold to $399 million, up from $50.9 million a year earlier. The figure also exceeded analysts’ expectations of $371.4 million, News.Az reports, citing Reuters.
Following the earnings report, Nebius shares surged 13% in premarket trading as investors reacted positively to the company’s rapid growth in the expanding AI sector.
Nebius has positioned itself as a growing player in the AI cloud market by offering high-performance computing services powered by Nvidia graphics processing units. The company provides developers with cloud infrastructure, storage systems and software tools designed to build, train and deploy AI models.
The company’s aggressive expansion strategy has also led to a sharp increase in spending. Nebius reported first-quarter capital expenditures of about $2.5 billion, compared with $544 million during the same period last year. The spending slightly exceeded analysts’ estimates of $2.4 billion.
Much of the investment has gone toward expanding GPU capacity and building new data center infrastructure to support rising enterprise demand for AI services.
Analysts expect Nebius to significantly increase its global data center capacity to around 900 megawatts by the end of 2026, a move that could further accelerate revenue growth.
However, investors remain cautious about the company’s heavy spending levels, which could continue to pressure profit margins in the near term. Similar concerns have also emerged around rival AI cloud company CoreWeave, which recently projected between $30 billion and $35 billion in annual capital expenditures.
Nebius has continued expanding through acquisitions and major commercial agreements. Earlier this month, the company agreed to acquire startup Eigen AI for approximately $643 million to strengthen its inference platform and expand its presence in the United States.
The company also signed a long-term agreement with Meta to provide up to $27 billion worth of computing capacity over the next five years, further strengthening its position in the competitive AI infrastructure market.
By Aysel Mammadzada
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