Nebius Group Secures $50 Billion Contracted Backlog
Nebius Group (NASDAQ: NBIS), emerging from the restructuring of Yandex in 2024, has signed significant contracts worth nearly $50 billion for AI compute services. Its key partnerships include a five-year contract with Microsoft worth up to $19.4 billion and an expanded deal with Meta Platforms reaching up to $27 billion. The company, backed by $2.5 billion in capital, aims to scale its data center capacity from 170 to 800 megawatts by the end of 2026.
As of now, Nebius is working to convert its massive contracted backlog into revenue, with management projecting revenues of $3 billion to $3.4 billion for 2026, compared to its 2025 revenue of $530 million. The company’s market cap currently hovers around $41 billion.
However, Nebius faces potential risks, including the need for timely infrastructure development and the execution of contracts without renegotiation. Additionally, it expects to spend $16 billion to $20 billion in capital expenditures this year, emphasizing the critical nature of effective execution to capitalize on its lucrative contracts.
