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Nebius Group N.V. (NBIS), an Amsterdam-based AI infrastructure neo cloud company, reported a remarkable revenue growth of 625% last quarter, driven by skyrocketing demand for AI infrastructure that supports generative AI, machine learning, and high-performance computing. The company signed a $17.4 billion deal with Microsoft (MSFT) to provide dedicated GPU capacity from its new data center in Vineland, NJ. AI cloud infrastructure revenues rose more than nine times year-over-year due to increased demand for copper GPUs.
To capitalize on this demand, Nebius is expanding its data center footprint across New Jersey, the UK, and Israel, targeting nearly 1 gigawatt of total capacity by 2026. Despite needing substantial capital for this expansion, Nebius management noted they possess significant cash reserves and will pursue capital-raising opportunities as needed. Nebius also has valuable stakes in non-core businesses, including a 28% stake in ClickHouse, valued at around $6 billion, which could serve as a capital source for its operations.
In contrast, Microsoft, as both a client and competitor, has a cash reserve of $94.56 billion and plans over $30 billion in capital expenditures for the first quarter of fiscal 2026. CoreWeave (CRWV), another competitor, is aggressively building data centers, with a $6 billion investment in Lancaster, PA, aiming for 900 MW of power by year-end.
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