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Nebius Group N.V. (NBIS) reported a staggering 385% year-over-year revenue increase for Q1 2025, with annualized run-rate revenue (ARR) surging to $310 million by April 2025. The company aims for $750 million to $1 billion in ARR by 2025, capitalizing on the growing demand for AI infrastructure, backed by a $700 million funding round in December 2024 from investors like NVIDIA and Accel.
Nebius is strategically expanding in North America and Europe, as part of a private placement of $1 billion in convertible notes announced in June 2025, to stimulate growth amidst the AI sector boom. According to IDC, AI infrastructure spending is expected to reach $223 billion by 2028, with specialized servers representing a significant portion of investment.
While Nebius has experienced significant growth, it faces competition from companies like CoreWeave, Inc. (CRWV) and Microsoft Corporation (MSFT). CoreWeave is projecting revenue between $4.9 billion and $5.1 billion for 2025, while Microsoft anticipates total revenues of $73.15 billion to $74.25 billion in its fiscal fourth quarter.
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