Nebius Surges After Inking $3 Billion AI Infrastructure Deal with Meta
The five-year agreement, announced alongside a 355% surge in quarterly revenue, deepens Nebius's role as a key AI partner for Big Tech.
Nebius Group (NASDAQ: NBIS) shares climbed Tuesday after the AI infrastructure specialist announced a landmark $3 billion, five-year cloud agreement with Meta Platforms. The deal solidifies Nebius’s position as a critical technology provider to the world’s largest tech companies and underscores the voracious demand for computing power to train and operate artificial intelligence models.
The announcement, made in conjunction with its third-quarter earnings report, sent the stock higher in morning trading. The deal will see Nebius provide critical AI infrastructure for Meta, expanding a relationship that already includes supporting the development of Meta’s Llama series of large language models.
This contract marks the second mega-deal for Nebius in recent months, following a staggering $17.4 billion agreement with Microsoft in September. By securing contracts with two of the biggest hyperscalers, Nebius is cementing a unique market position as an essential, high-performance partner to the very giants it also technically competes with. The strategy appears to be paying off, providing validation for its specialized approach focused on GPU-powered cloud services.
"This agreement with Meta is a testament to the performance and scalability of our AI cloud infrastructure," a company representative stated in its quarterly results announcement. "We are thrilled to expand our collaboration with a leader in artificial intelligence and support their ambitious long-term vision."
The Meta deal was unveiled alongside a blockbuster third-quarter financial report that highlighted Nebius’s explosive growth trajectory. The company posted revenue of $146.1 million, a 355% increase from the $32.1 million reported in the same period last year. Its adjusted EBITDA loss also narrowed significantly to $5.2 million, an 89% improvement from a $45.9 million loss a year prior, signaling a clear path toward profitability as it scales.
With a market capitalization approaching $28 billion, Nebius has emerged as a key player in the AI arms race, alongside other specialized providers like CoreWeave and Lambda Labs. These companies focus on providing massive fleets of in-demand hardware, particularly Nvidia GPUs, which have become the engine of the generative AI boom. This focus allows them to offer performance and availability that can, in some cases, exceed what the larger, more generalized cloud platforms like Amazon Web Services and Google Cloud can provide for specific AI workloads.
Investors have rewarded Nebius for its focused execution. The company’s stock has seen a meteoric rise over the past year, climbing from a 52-week low of $17.39 to a high of $141.10. Even with this run-up, Wall Street analysts remain bullish, with a consensus price target of $161.40, suggesting further upside. To fuel its rapid expansion and capital-intensive build-out of data centers, Nebius also announced its intent to file for an at-the-market (ATM) equity program for up to 25 million shares.
Looking ahead, Nebius has set an ambitious annualized revenue target of $7 billion to $9 billion by the end of 2026. With long-term, multi-billion dollar commitments from Meta and Microsoft now secured, that goal appears increasingly within reach. The company is positioning itself not just as a service provider, but as a foundational pillar in the rapidly expanding AI economy.