Nebius Clouds Over CoreWeave as AI Infrastructure Race Heats Up
Wall Street loves a reinvention arc, and Nebius is starting to fit the bill. The Amsterdam-based company, which once sat under Yandex, reported nearly $400M in quarterly revenue versus only $25M a year ago. Management now expects to exit 2026 with annualized revenue potentially reaching $9B as demand for AI computing capacity keeps climbing.
- Nebius locked in AI infrastructure deals worth up to $27B with Meta and $17.4B with Microsoft, while Nvidia added another $2B equity investment.
- It also owns more than 75% of its contracted power capacity and recently secured 1.2GW of power and land in Pennsylvania for its second gigawatt-scale US AI site.
Growing bullish: Unlike CoreWeave, which generated over $2B in Q1 revenue and built a backlog nearing $100B, Nebius is betting on vertical integration. The company designs its own data centers, servers, and cooling systems in-house, giving it more flexibility and potentially better margins if AI demand shifts. With shares trading at a 76.6 P/E versus the software industry’s 28.3, Wall Street is betting the AI infrastructure trade still has legs.
