AI cloud firm Nebius signs $3 billion deal with Meta, posts more than four-fold rise in revenue

(Reuters) -Nebius Group has signed a woody worthy astir $3 cardinal with Meta to supply the Facebook proprietor with AI infrastructure implicit ​a five-year period, the institution said connected Tuesday, aft it ‌reported a much than fourfold emergence successful third-quarter revenue.

The company's shares seesawed successful volatile premarket trading,‌ aft it posted a surge successful superior spending and a quarterly nonaccomplishment of implicit $100 million, widening from $39.7 cardinal past year.

The banal has been connected a beardown tally this year, with its marketplace worth rising fourfold to $27.61 billion, done ⁠last close.

The statement with Meta ‌underscores the surging request for high-performance computing powerfulness that is required to physique and tally artificial quality models.

It is Nebius' 2nd declaration ‍with a hyperscaler, pursuing its $17.4 cardinal woody with Microsoft successful September.

Nebius said it would deploy the capableness needed for the Meta declaration implicit the adjacent 3 months, adding that ​the request was truthful beardown that the size of the declaration had to beryllium ‌limited to the capableness that Nebius had available.

Amsterdam-based Nebius is among a radical of alleged neocloud companies that connection hardware and unreality capableness arsenic services. Its halfway concern involves providing Nvidia graphics processing units and AI cloud, helping companies grow their AI infrastructure.

Nebius and its larger rival CoreWeave person seen beardown request this twelvemonth arsenic insatiable ⁠AI appetite has near adjacent the biggest unreality companies,​ specified arsenic Microsoft and Amazon, with capableness ​constraints.

Nebius reported a 355% leap successful gross to $146.1 cardinal successful the 3rd 4th ended September.

The institution is targeting $7 cardinal to ‍$9 cardinal successful annualized ⁠run-rate gross by the extremity of 2026, compared with its ARR of astir $551 cardinal astatine September-end.

Its superior expenditures ballooned to $955.5 ⁠million successful the September quarter, from $172.1 cardinal a twelvemonth earlier, arsenic the institution invests ‌heavily successful securing GPUs, onshore and power.

(Reporting by Deborah ‌Sophia successful Bengaluru; Editing by Vijay Kishore)