Nebius Group N.V. is a publicly listed Amsterdam-based company that builds full-stack AI infrastructure. Its offerings include large GPU clusters, cloud services tailored for AI, and developer tools, all designed to run AI workloads at a global scale. After spinning out its Russian assets in 2024, Nebius realigned to provide high-capacity AI platforms, operate dedicated data centers, and supply ecosystems of technical support, data, and hardware. Its products work by delivering end-to-end control of the AI value chain, from the physical hardware to software services and cloud-like capabilities, across multiple geographies. Nebius differentiates itself from major traditional cloud providers by offering integrated, owner-operated data centers and a complete stack focused on AI, rather than simply reselling generic cloud resources. The company's goal is to be a practical alternative to large cloud providers, giving customers more control, reliability, and scale for AI workloads.
Company Size
1,001-5,000
Company Stage
IPO
Headquarters
Amsterdam, Netherlands
Founded
1997
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Nebius shares have surged 181% this year to $235.88, driven by a $27 billion five-year deal with Meta and a $2 billion equity investment from NVIDIA. The AI cloud company holds a $37.5 billion backlog and reported second-quarter revenue growth of 454%. However, significant risks remain. Three customers account for 59% of revenue, and the company faces capital expenditure guidance of $20-25 billion. Convertible notes carry a fair value of $20.8 billion, creating substantial dilution risk. Second-quarter capex of $5.66 billion far exceeded operating cash flow of $2.25 billion. Management expects over $9 billion in customer prepayments this year, with recent deals covering 50-60% of associated capex. Analysts see 20% upside to $284, but the stock trades 21% below its 52-week high. Execution remains critical as the company must convert deployed capacity into revenue before its next financing round.
Nebius has signed a 12-year agreement with AIB Data Centers for 50 MW of critical IT capacity at a site in the southeastern US. The deal includes optional renewals, though financial terms were not disclosed. AIB said customer prepayments, along with project-level debt and preferred equity, should fund a substantial portion of initial development costs. The capacity is backed by a 15-year electric service agreement for 65 MW of utility load and will be delivered across two data halls. Nebius provides AI cloud infrastructure for developers and enterprises. Andrey Korolenko, the company's chief product and infrastructure officer, said time-to-power is the binding constraint on AI infrastructure today.
Two AI infrastructure companies, Innodata and Nebius Group, offer contrasting investment profiles as demand for generative AI capabilities accelerates. Innodata provides data engineering and human expertise for AI model training, serving five of the "Magnificent Seven" tech giants. The company reported FY 2025 revenue of nearly $252 million, up 48% year-over-year, with net income of approximately $32.2 million. It operates debt-free with strong cash generation. Nebius Group operates cloud infrastructure for AI model development. The former Yandex unit pivoted to AI in 2025, achieving explosive growth with FY 2025 revenue reaching nearly $530 million, up roughly 350% year-over-year. Net income was approximately $102 million, though the company posted a free cash flow loss of nearly $3.7 billion due to capital spending. Innodata faces customer concentration risk, with one client accounting for nearly 58% of 2025 revenue. Nebius competes against hyperscalers like Amazon and Microsoft whilst managing capital-intensive infrastructure expansion. Despite a higher price-to-sales ratio of 42.6x versus Innodata's 7.3x, Nebius's lower forward P/E of 37.8x and projected $3.3 billion in 2026 sales present stronger growth prospects.
Nebius Group is raising prices for its AI inference platform Token Factory by an average of 18.3%, effective 1 October, according to customer communications shared on social media. Hourly costs for Nvidia GPU configurations will increase between 16% and 20%, with H100 pricing rising from $4.05 to $4.70 per hour and B300 rates climbing from $8.10 to $9.70. The price hikes follow similar increases to on-demand cloud services earlier this month. Nebius attributes the adjustments to intense demand for GPU capacity. The company reported 454% revenue growth to $582.3 million in Q2, driven by surging AI Cloud demand. NBIS shares have gained 182% year-to-date and rose 0.2% in overnight trading following a five-session winning streak.
Nebius reported a dramatic margin improvement, with EBITDA swinging from negative 24.33% in Q4 2025 to 44.38% in Q2 2026. Management attributes this to a shift from preselling 2027 capacity to premium short-term pricing, with standard contracts now at $20 million to $25 million per megawatt and short-term deals fetching $40 million to $50 million. Despite the margin gains and shares up over 150% year to date, NBIS trades at 9.34 times next-twelve-months enterprise value to revenue, below its historical average. However, free cash flow deteriorated sharply, falling to negative $3.41 billion in Q2 2026 as capital expenditure accelerated. Management disclosed at Citi's Global TMT Conference that Nebius has secured only 20% of the roughly $250 billion needed to fund its 5-gigawatt capacity pipeline.