AI Cloud Pioneer Nebius Secures $3 Billion Deal with Meta and Achieves Over Fourfold Revenue Surge
Nebius Group has announced a significant milestone by securing a $3 billion deal with Meta. This strategic agreement will focus on providing AI infrastructure over a five-year span. The announcement came shortly after Nebius reported more than a fourfold increase in its third-quarter revenue.
Details of the Meta Agreement
The contract, which is Nebius’ second deal with a hyperscale technology provider, follows a recent $17.4 billion agreement with Microsoft. This illustrates the growing demand for high-performance computing resources necessary for developing and operating advanced AI models. The agreement with Meta will see Nebius deploying the required capacity within the next three months.
Financial Highlights
- Third-quarter revenue surged 355%, reaching $146.1 million.
- Capital expenditures grew significantly, amounting to $955.5 million.
- The company reported a loss of over $100 million, widening from a $39.7 million loss the previous year.
Market Position and Future Projections
Despite recent losses, Nebius’ market value has increased fourfold this year, reaching $27.61 billion. The company aims for an annualized run-rate (ARR) revenue of between $7 billion and $9 billion by the end of 2026. Currently, its ARR stands at approximately $551 million.
About Nebius
Based in Amsterdam, Nebius is part of the emerging neocloud sector, which provides hardware and cloud capacity as services. The company specializes in the provision of Nvidia graphics processing units (GPUs) and AI cloud infrastructures. Demand for Nebius’ offerings has surged as major cloud service providers, like Microsoft and Amazon, face capacity constraints due to increasing AI workloads.
The robust growth in Nebius’ business reflects the insatiable appetite for AI capabilities across various industries, positioning the company as a key player in the AI infrastructure market.
