2 days ago
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Reuters
Wed, May 13, 2026 astatine 6:04 AM CDT 1 min read
May 13 (Reuters) - Nebius Group connected Wednesday reported higher-than-expected first-quarter superior spending, driven by investments tied to the procurement of graphics processing units and information halfway hardware for its halfway AI unreality business.
The institution has grabbed a portion of the lucrative AI and unreality infrastructure marketplace by providing Nvidia GPUs and computing platforms to developers.
However, analysts person flagged Nebius' dense superior spending arsenic a large interest arsenic the institution aggressively expands its planetary information center footprint, putting unit connected margins contempt beardown gross growth.
Nebius adjacent paused its stock buyback programme in precocious 2024 to redirect superior toward expanding its halfway AI infrastructure business.
The concerns reflector those astatine larger rival CoreWeave, which has projected between $30 cardinal and $35 cardinal successful capital spending this year, warning that the ramp-up successful investments could measurement connected near-term margins.
Nebius Group has been expanding its AI infrastructure concern done acquisitions and ample computing contracts.
Earlier this month, the institution agreed to bargain AI startup Eigen AI for astir $643 cardinal to fortify its inference level and U.S. presence.
Nebius also signed a semipermanent woody with Meta to supply up to $27 cardinal worthy of computing capableness implicit five years.
Capital expenditure jumped to astir $2.5 billion successful the first quarter, compared with $544 cardinal a twelvemonth ago. Analysts astatine Visible Alpha estimated $2.4 billion.
Revenue for the 3 months ended March jumped to $399 million, beating an estimation of $371.4 million, according to data compiled by LSEG.
(Reporting by Harshita Mary Varghese successful Bengaluru; Editing by Pooja Desai)
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