Data Center
Nebius: Financing its Data Center Ambitions Will be Challenging
The trend toward neoclouds is a high risk/high reward opportunity for investors. Nebius is similar to CoreWeave, dubbing itself as AI native cloud infrastructure, which means the infrastructure was created specifically for AI workloads with architectures built on bare metal servers instead of hypervisor layers, for example, creating an important differentiation from the Big 3 which we’ve previously covered here and here. Nebius shares surged in September following the up to $19.4 billion deal with Microsoft. Recently, the company expanded its hyperscaler customer list recently with a $3 billion deal with Meta expected to ramp over the next three months. Backed by these two deals ramping through 2026, Nebius now projects reaching $7 billion to $9 billion in annualized run rate revenue (ARR) by the end of next year, up more than 13X from its current ARR of $551 million from Q3.
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