Nebius Group signed a $3 billion deal with Meta on Tuesday to supply AI infrastructure for five years, following a significant rise in quarterly revenue.
The company’s shares experienced volatility in premarket trading after reporting a quarterly loss exceeding $100 million, an increase from $39.7 million last year, alongside a surge in capital spending.
Nebius’ market value increased fourfold to $27.61 billion through its last close this year. This agreement with Meta highlights the escalating demand for high-performance computing power essential for developing and operating artificial intelligence models.
The Meta contract is Nebius’ second with a hyperscaler, succeeding its $17.4 billion agreement with Microsoft in September. Nebius will deploy the necessary capacity for the Meta contract within the next three months. The company stated demand was so substantial, the contract size was restricted to Nebius’ available capacity.
Amsterdam-based Nebius operates as a neocloud company, providing hardware and cloud capacity as services. Its primary focus is supplying Nvidia graphics processing units and AI cloud solutions, assisting companies in scaling their AI infrastructure.
Nebius and CoreWeave, a larger competitor, have experienced robust demand this year. This strong AI appetite has led to capacity constraints for major cloud companies, including Microsoft and Amazon.
Nebius reported a 355% increase in revenue, reaching $146.1 million, for the third quarter ending September. The company aims for $7 billion to $9 billion in annualized run-rate revenue by the close of 2026. This compares to its annualized run-rate revenue of approximately $551 million at the end of September.
Capital expenditures expanded to $955.5 million in the September quarter, up from $172.1 million a year prior. This outlay reflects significant investments in acquiring GPUs, land, and power.
