Company Profile
Spun-off from Yandex
Nebius (ticker: NBIS), headquartered in Amsterdam, Netherlands, was formerly owned by Russian search engine giant Yandex (ticker: YNDX).
Following Russia’s invasion of Ukraine, the United States imposed sanctions on its Russian affiliates. In early 2024, the company’s international assets were divested from Yandex for $5.4 billion.
Business territory
At its inception, Nebius planned to operate in four divisions: cloud computing, data labeling, autonomous vehicles, and education technology. Nebius Avride subsidiary develops autonomous vehicle technology for ride-hailing and delivery robots. Its TripleTen subsidiary operates a leading educational technology platform for workers in the technology sector.
US Public Listing
The company listed on the Nasdaq on October 21, 2024.
Company Operations
Businesses focus
Nebius provides developers with computing power, storage, tools, and services. The company’s core AI platform is designed to handle massive AI workloads. Companies looking to develop AI capabilities can pay for subscriptions to use the infrastructure provided by companies like Nebius. Nebius doesn’t manufacture AI chips itself. Instead, it primarily builds large data centers filled with Nvidia GPUs, turning this computing power into a cloud service, renting it to companies in need of AI.
Nebius not only rents hardware but also provides a complete suite of software and system management services, allowing users (such as AI developers and businesses) to access these supercomputers through the cloud without having to purchase expensive hardware themselves.
Typical Uses
Nebius provides customers with a full-service AI cloud infrastructure powered by Nvidia’s graphics processing units (GPUs). Customers can rent these GPUs by the hour to train, customize, and deploy AI models. It also provides access to popular AI models such as Llama, DeepSeek, and Stability AI, allowing users to purchase tokens to create customized applications tailored to their needs.
Relationship with Tech giants
Nebius’s key investors
Nvidia Capital holds a stake in six US-listed companies, one of which is Nebius. Among Nvidia’s in-investment portfolio, CoreWeave, Applied Digital, and Nebius are all “GPU + Datacenter + Cloud” operators. They possess a vast inventory of H100, H200, and Blackwell GPUs, contributing to Nvidia’s formidable arsenal in AI infrastructure. Nvidia, through equity investment, deepens sales ties and shares in gross profits.
How does Nebius collaborate with Nvidia?
As early as September 2024, Nebius announced a $1 billion investment in AI infrastructure in Finland and France. As part of this project, Nebius will construct datacenters equipped with clusters of Nvidia Hopper and Blackwell graphics processing units (GPUs).
In addition, the company has established a new datacenter in Kansas City, which will be equipped with more Blackwell GPUs, expanding its presence in the United States.
Opportunities
Potential Market
Goldman Sachs estimates that the cloud Infrastructure as a Service (IaaS) market could reach $580 billion by 2030. Meanwhile, the Platform as a Service (PaaS) market is projected to reach $600 billion by the end of 2030.
Bright Outlook
Given the company’s initial buzz in the US and its close relationship with Nvidia, Nebius is poised to continue collaborating more closely with other ongoing AI infrastructure projects, such as those from hyperscalers like Microsoft, Amazon, and Alphabet.
Customers and Competitors
Key Customers
On September 9th, Microsoft announced a multi-year contract with Nebius, extending through 2031 and valued at $1.94 billion. This sent Nebius’s stock price soaring 50% in a single day!
Competitors
Nebius can be considered a competitor to CoreWeave. For more information, see my post of “How GPU farms CoreWeave make money?“
Operations
Forecast in 2024
At the time of the spinoff, Nebius projected revenue growth of 200% to 300% by 2025, reaching $500 million to $700 million. The company plans to invest between $600 million and $1.5 billion to expand the capacity of its data centers in Finland, France, and North America.
Future Company Outlook
Nebius is currently small. Its revenue was just under $250 million over the past 12 months, but it’s growing at an impressive rate. In the first six months of 2025, its revenue increased 545% year-over-year to $156 million. Furthermore, Nebius expects to reach $1 billion in annualized run rate revenue (ARR) by the end of 2025.
Company Expansion Plans
Nebius has plans to nearly quintuple its data center capacity to 1 gigawatt (GW) by 2028.
Capital Market Performance
Stock Price Performance
Since its IPO, the company’s stock has risen 407%. From September 19, 2025 alone, the stock has risen 226%, with no signs of slowing down.
Risks
Nebius is not yet profitable, but it has rapidly growing revenue, approximately $2.3 billion in cash on its balance sheet, and minimal debt. Nebius also has a large market and a partnership with Nvidia. Furthermore, it’s in one of the hottest sectors of the stock market, commanding a high valuation. Investors can certainly invest. Given the company’s background, its stock price could see some volatility, but compared to other AI companies, it looks relatively cheap.
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