Nebius Partners with Meta in $3 Billion AI Infrastructure Deal
In a groundbreaking move, Nebius has announced a $3 billion contract with Meta to provide cutting-edge AI infrastructure over the next five years. This collaboration underscores Meta’s intensified investment in artificial intelligence while spotlighting Nebius as a major player in the neocloud market. Hot on the heels of their $17.4 billion agreement with Microsoft in September, Nebius is solidifying its reputation as a key AI enabler for global tech giants.
Third-Quarter Performance: Mixed Results
The announcement coincides with Nebius releasing its third-quarter financials, which, while impressive, fell short of some analyst expectations. Revenue for the quarter soared by 355%, reaching $146.1 million. However, the results slightly missed Wall Street’s forecast of $156.5 million. Additionally, Nebius reported a net loss of $100.4 million, a sharp increase compared to $39.7 million in the same quarter last year, stemming from significant capital investments.
Nebius’ Ambitious Growth Trajectory
Despite recent financial setbacks, Nebius is scaling aggressively. The company has raised its power capacity target to over 2.5 gigawatts by 2026, up from the previously announced 1 gigawatt. Impressively, connected power is projected to quadruple within the next year. This robust approach not only supports the Meta contract but also positions Nebius to seize more opportunities amidst the surging demand for cloud-based AI infrastructure.
Capital Expenditures Fuel Expansion
To meet these ambitious goals, Nebius has ramped up its capital expenditures. In the last quarter alone, spending ballooned to $955.5 million from $172.1 million year-over-year. This investment is channelled toward acquiring GPUs, expanding power grids, and purchasing land for new data centers. The strategy is clear: secure vital infrastructure to maintain its competitive edge in a rapidly evolving AI landscape.
Why This Matters for AI and Cloud Industries
Nebius’ success marks a significant shift in the AI and cloud computing space, where smaller, nimble players are now competing with established giants like Microsoft and Amazon. With hyperscalers facing resource constraints, companies like Nebius and its competitors, such as CoreWeave, are filling critical gaps — delivering specialized, scalable infrastructure to meet escalating global AI demands.
Shop the Tools Behind AI Innovation
As Nebius powers its growth with state-of-the-art GPUs, hardware like NVIDIA’s Data Center GPUs can be at the forefront of your business’s AI ambitions. These GPUs are designed to handle complex AI workloads with precision and efficiency. Take a step into the future today!
Looking Ahead
Nebius is betting big on the future of neocloud and AI infrastructure. By 2026, the company aims to increase its annualized revenue run rate to an impressive $7–$9 billion. While this projection far exceeds analysts’ predictions, it showcases Nebius’ ambition and determination to redefine its industry position. With the Meta partnership and other deals, the company proves that the AI revolution is just beginning.
