Nebius revenue surges as AI cloud demand fuels rapid growth

Nebius Group reported a sharp increase in quarterly revenue on Wednesday as demand for artificial intelligence infrastructure and cloud computing services continued to grow rapidly.

The Amsterdam-based company said revenue for the first quarter rose to $399 million, up from $50.9 million a year earlier.

The result exceeded analyst expectations of $371.4 million, according to LSEG data.

Nebius shares climbed 13 percent in premarket trading following the earnings release.

The company has been investing heavily in graphics processing units, data centres and cloud infrastructure to support AI developers and enterprise customers.

First-quarter capital spending reached around $2.5 billion, compared with $544 million a year earlier.

Nebius provides access to Nvidia GPUs, cloud computing platforms and software tools used to build and deploy AI models.

Analysts expect the company to significantly increase its global data centre capacity by the end of the year, helping drive future growth.

However, some analysts have warned that the company’s aggressive spending could place pressure on profit margins in the near term.

Nebius recently announced a $643 million deal to acquire startup Eigen AI and also signed a long-term agreement with Meta worth up to $27 billion over five years to provide computing capacity.