Key Points
Nebius (NASDAQ: NBIS) and CoreWeave (NASDAQ: CRWV) are evolving into AI cloud infrastructure providers, responding to the growing AI demand. Nebius, formerly Yandex, relocated to the Netherlands and shifted its data centers to focus on AI tasks due to sanctions affecting its Russian operations. CoreWeave transitioned from Ethereum mining to AI after the cryptocurrency market downturn in 2018.
CoreWeave operates 51 data centers with over 250,000 Nvidia GPUs, enabling AI processing approximately 35 times faster than competitors like Amazon and Microsoft, and has a revenue backlog of $104 billion, up 246% year over year. In contrast, Nebius, with four data centers and plans for 14 more, reported a backlog exceeding $40 billion, a quadrupling from the previous year.
Analysts project CoreWeave’s revenue to grow at a CAGR of 101% and EBITDA by 110% from 2025 to 2028, while Nebius is expected to grow revenue at 253% CAGR and EBITDA by 212% in the same timeframe. Despite their growth potential, both companies face profitability concerns and are often viewed as undervalued due to high debt and investment in infrastructure.
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