Nebius Group (NASDAQ: NBIS) is a high-growth AI infrastructure provider with a clear path to profitability and strong competitive advantages. Firm created by Volozh who led Yandex, by carving out the non-Russia operations of Yandex. He had to flee Russia owing to opposing Putin. Firm went public late last year, also raised 700m from NVDA and partnership which gives them access and discount on the NVDA chips.
Revenues are poised to reach $750 million–$1 billion in ARR by 2025, underpinned by:
Aggressive Capacity Expansion: Plans to build hundreds of megawatts of data centers in 2025, scaling GPU capacity from 20,000 to 240,000 by 2027.
High Performance and Lower Costs: Exclusive Nvidia partnership securing top-tier GPUs at discounted rates (~$20k/unit) and energy-efficient operations (PUE of 1.13 in Finland).
Robust Funding: $3 billion in cash plus $1.5 billion in non-core assets offers up to $4.5 billion in liquidity to support rapid growth.
Targeted Market Strategy: Specialized AI services and flexible token-based pricing address the 30% of enterprise clients seeking high-performance AI solutions beyond hyperscalers’ general cloud offerings.
Attractive Valuation: With a $6 billion market cap, Nebius trades at a deep discount relative to peers (e.g., CoreWeave’s expected $35+ billion IPO), creating a compelling entry point.
Overall, Nebius’s unique positioning, strong financial resources, and proven leadership make it a compelling AI infrastructure play, poised to benefit from the forecasted 35% CAGR in the AI market through 2030.
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