Nebius Group N.V., an Amsterdam-based AI infrastructure company, is making waves in the market with its rapid expansion and impressive revenue growth. The company recently posted a 700% increase in Annual Recurring Revenue (ARR), signaling strong momentum in the AI infrastructure space. Nebius focuses on building full-stack infrastructure, including large-scale GPU clusters, cloud platforms, and various developer tools and services.
The company has collaborations with companies like Saturn Cloud and deeper integrations with NVIDIA, bolstering its market position. To capitalize on the growth of AI infrastructure, Nebius secured a $1 billion private placement in convertible notes in June 2025. The company aims to increase revenue opportunities by 2026 and has announced the general availability of NVIDIA GB200 Grace Blackwell Superchip capacity for its European customers.
Nebius is expanding rapidly, with a presence in the United States, Europe, and the Middle East. The company has added new strategic data centers, including one in Israel, and plans to double its capital expenditure for 2025 to $2 billion.
Nebius posts impressive financial growth
The company’s goal is to build a data-center infrastructure with over 1 gigawatt (GW) of capacity to significantly boost its revenue. Recent upgrades to its Slurm-based cluster and object storage capabilities have improved its AI cloud infrastructure, enhancing reliability and reducing downtime. Despite the impressive growth, Nebius faces challenges in the highly competitive AI infrastructure market.
The company’s most direct rival is CoreWeave, which has carved out a strong position as a specialist in GPU computing. The ongoing GPU price war, combined with the need for extensive capital investment, will test Nebius’s ability to sustain its growth and expansion plans. Nebius remains confident in meeting its full-year ARR guidance of $750 million to $1 billion.
However, the company expects adjusted EBITDA to turn positive only in the second half of 2025. As the demand for AI models and GPU infrastructure continues to rise, Nebius’s strategy of diversification and strategic partnerships could prove crucial for its long-term survival and success. The company’s rapid growth and ambitious expansion plans make it an exciting player to watch in the AI infrastructure market.