Nebius Secures $3B Meta Deal Amid Mixed Q3 Results and Aggressive AI Infrastructure Expansion

Nebius inks $3B data center deal with Meta after missing third quarter expectations - SiliconANGLE

Nebius inks $3B data center deal with Meta after missing third quarter expectations Nebius Group NV today disclosed that it has won a $3 billion contract to provide Meta Platforms Inc. with data center infrastructure. The company nevertheless ended the trading session down 7%. The selloff was likely a response to the quarterly results it released in conjunction with the announcement of the Meta deal. Nebius more than tripled its revenue year-over-year in the three months ended Sept. 30, but still fell short of analyst expectations. The Amsterdam-based company will lease an unspecified amount of artificial intelligence infrastructure to Meta for three years. Nebius operates a cloud platform that provides access to multiple Nvidia Corp. graphics card varieties, block storage and other hardware resources. It also offers managed versions of open-source tools such as Slurm, a Kubernetes alternative that is widely used in AI training projects. "Over the next three months, we plan to deploy the capacity needed to service the agreement," Nebius Chief Executive Officer Arkady Volozh wrote of the Meta deal in a letter to shareholders. "In fact, demand for this capacity was overwhelming, and the size of the contract was limited to the amount of capacity that we had available." The deal comes two months after Nebius won an even larger AI infrastructure contract from Microsoft Corp. Under that agreement, it will provide the tech giant with access to up to $19.4 billion worth of hardware hosted in its New Jersey data center (pictured.) The facility, which is based on a custom design, is set to open by the end of year with an initial capacity of 100 megawatts. Nebius' AI infrastructure business is its primary revenue driver. The unit's sales surged 400% year-over-year in the third quarter. Nebius also has two other business units, Avride and TripleTen, that compete in the autonomous vehicle and online learning markets, respectively. The company's total revenue rose 355% to $146.1 million. It missed the consensus estimate, which forecasted sales of $155 million. Nebius' losses also grew significantly in the third quarter. The company's net income loss widened from $43.6 million in the third quarter of 2024 to $119.6 million, about $20 million more than what analysts had forecasted. However, the company significantly narrowed its loss in adjusted EBITA, or earnings before interest, taxes, depreciation and amortization, terms. Nebius expects to achieve annualized revenues of $7 billion to $9 billion by the end of 2026. It plans to deliver that growth by significantly expanding its data center capacity. Nebius hopes to end 2026 with 2.5 gigawatts of contracted power, a metric it uses to track data center sites under construction. The company will finance the upcoming data centers by raising new capital. In conjunction with the release of its earnings report today, Nebius announced plans to sell up to 25 million shares through an at-the-market offering. It also intends to raise debt financing.

Nebius Group inks $3B Meta AI supply deal

Nebius' market value increased fourfold to $27.61 billion through its last close this year. This agreement with Meta highlights the escalating demand for high-performance computing power essential for developing and operating artificial intelligence models. Nebius Group signed a $3 billion deal with Meta on Tuesday to supply AI infrastructure for five years, following a significant rise in quarterly revenue. The company's shares experienced volatility in premarket trading after reporting a quarterly loss exceeding $100 million, an increase from $39.7 million last year, alongside a surge in capital spending. Nebius' market value increased fourfold to $27.61 billion through its last close this year. This agreement with Meta highlights the escalating demand for high-performance computing power essential for developing and operating artificial intelligence models. The Meta contract is Nebius' second with a hyperscaler, succeeding its $17.4 billion agreement with Microsoft in September. Nebius will deploy the necessary capacity for the Meta contract within the next three months. The company stated demand was so substantial, the contract size was restricted to Nebius' available capacity. Amsterdam-based Nebius operates as a neocloud company, providing hardware and cloud capacity as services. Its primary focus is supplying Nvidia graphics processing units and AI cloud solutions, assisting companies in scaling their AI infrastructure. Nebius and CoreWeave, a larger competitor, have experienced robust demand this year. This strong AI appetite has led to capacity constraints for major cloud companies, including Microsoft and Amazon. Nebius reported a 355% increase in revenue, reaching $146.1 million, for the third quarter ending September. The company aims for $7 billion to $9 billion in annualized run-rate revenue by the close of 2026. This compares to its annualized run-rate revenue of approximately $551 million at the end of September. Capital expenditures expanded to $955.5 million in the September quarter, up from $172.1 million a year prior. This outlay reflects significant investments in acquiring GPUs, land, and power.

AI cloud firm Nebius signs $3 billion deal with Meta, posts more than four-fold rise in revenue

Nebius Group has signed a deal worth about $3 billion with Meta to provide the Facebook owner with AI infrastructure over a five-year period, the company said on Tuesday, after it reported a more than fourfold rise in third-quarter revenue. The company's shares seesawed in volatile premarket trading, after it posted a surge in capital spending and a quarterly loss of over $100 million, widening from $39.7 million last year. The stock has been on a strong run this year, with its market value rising fourfold to $27.61 billion, through last close. The agreement with Meta underscores the surging demand for high-performance computing power that is required to build and run artificial intelligence models. It is Nebius' second contract with a hyperscaler, following its $17.4 billion deal with Microsoft in September. Nebius said it would deploy the capacity needed for the Meta contract over the next three months, adding that the demand was so strong that the size of the contract had to be limited to the capacity that Nebius had available. Amsterdam-based Nebius is among a group of so-called neocloud companies that offer hardware and cloud capacity as services. Its core business involves providing Nvidia graphics processing units and AI cloud, helping companies expand their AI infrastructure. Nebius and its larger rival CoreWeave have seen strong demand this year as insatiable AI appetite has left even the biggest cloud companies, such as Microsoft and Amazon, with capacity constraints. Nebius reported a 355% jump in revenue to $146.1 million in the third quarter ended September. The company is targeting $7 billion to $9 billion in annualized run-rate revenue by the end of 2026, compared with its ARR of about $551 million at September-end. Its capital expenditures ballooned to $955.5 million in the September quarter, from $172.1 million a year earlier, as the company invests heavily in securing GPUs, land and power.

Nebius Stock Is Up Over 200% This Year, but Its $3 Billion Meta Deal Still Changes Everything | The Motley Fool

It's the second major AI deal signed by Nebius since September. Nebius Group (NBIS 7.45%) stock was down 7% today on exceptionally heavy volume after the data center infrastructure company reported third-quarter earnings on Nov. 11. Revenues were 355%, but the company reported wider losses than last year because of increased spending to ramp up its data centers and outfit them with high-powered graphics processing units (GPUs) capable of training and running platforms powered by AI (artificial intelligence). However, the company also announced a new deal to provide $3 billion worth of AI infrastructure over five years to Meta Platforms (META 0.75%), which has been investing heavily to ramp up its own AI infrastructure, including its Llama large language model, AI-based advertising products, and customer-facing AI features such as Meta AI. Nebius reported revenues of $146.1 million for the third quarter, up 355% from a year ago. In the first nine months of the year, Nebius's revenue is up 437%, from $56.3 million in 2024 to $302 million in the first three quarters of 2025. However, the company posted a net loss of $119.6, a widening of 174% from last year's quarterly loss of $43.6 million. And the adjusted net loss was $100.4 million, up from a loss of $39.7 million in the same quarter a year ago. Nebuis reported it spent $955.5 million in the quarter on capital expenditures, up from $172.1 million a year ago. Management said that it sold out of its available capacity in the third quarter. It has 220 megawatts of connected power to data centers currently and is working to have between 800 megawatts and 1 gigawatt by the end of 2026. "2025 has been a building year as we put in place the infrastructure and framework for future rapid growth," CEO Arkady Volozh said in a letter to investors. "This year, we believe that we have successfully laid the foundations for an outstanding 2026 -- a year that should firmly position us among the top AI cloud businesses globally. And at the same time, 2026 is still just the beginning." Trading volume for the day was more than 38.6 million shares by Tuesday afternoon, more than double the stock's daily average trading of 17.5 million shares. Nebius believes it will have between $7 billion and $9 billion in annualized run rate revenue by the end of 2026, which would be a massive jump. The Meta Platforms deal is the second major deal announced this year by Nebius; it had previously announced a deal with Microsoft to provide dedicated AI infrastructure from its new data center in Vineland, New Jersey starting later this year. That deal was valued between $17.4 billion and $19.4 billion. Both deals are expected to be reflected on Nebius' bottom line in 2026, which will go a long way to helping the company build out its data centers, expand capacity, and scale the company into profitability. With the artificial intelligence market size expected to grow from $279.22 billion in 2024 to a whopping $3.5 trillion by 2033, Nebius is positioning itself as a key data center provider. The stock is down today but still showing gains of 263% this year.

Nebius plans to deploy first phase of Meta deal in December (NBIS:NASDAQ)

Nebius' (NBIS) nearly $3B deal to supply artificial intelligence infrastructure for Meta Platforms (META) is moving quickly, with the first phase beginning next month. However, per the agreement, Meta has the option to extend or terminate the order if capacity is not delivered The Meta deal provides capital for core AI business expansion and accelerates Nebius' positioning in AI cloud services. Meta can terminate or reduce the contract if Nebius misses delivery deadlines, potentially losing significant revenue. Nebius is working to boost contracted power and infrastructure capacity to remove bottlenecks and enable larger deals.

Nebius inks $3B AI infrastructure deal with Meta; Q3 revenue misses estimates

Shares of Nebius (NBIS) rose about 1% premarket on Tuesday after the company announced a deal with Meta Platforms (META) along with its third quarter results. "Today we are pleased to announce our second large AI infrastructure deal, this time with Both deals are expected to accelerate AI cloud business growth, supporting the goal of achieving $7-9 billion ARR by the end of 2026. A surge in AI infrastructure demand sold out all available capacity, highlighting strong momentum and strategy effectiveness. Nebius's adjusted net loss widened significantly, reflecting large investments and expenses required for growth.

AI cloud firm Nebius signs US$3 billion deal with Meta, posts more than four-fold rise in revenue

Nebius Group has signed a deal worth about US$3 billion with Meta to provide the Facebook owner with AI infrastructure over a five-year period, the company said on Tuesday, after it reported a more than fourfold rise in third-quarter revenue. The company's shares seesawed in volatile premarket trading, after it posted a surge in capital spending and a quarterly loss of over $100 million, widening from $39.7 million last year. The stock has been on a strong run this year, with its market value rising fourfold to $27.61 billion, through last close. The agreement with Meta underscores the surging demand for high-performance computing power that is required to build and run artificial intelligence models. It is Nebius' second contract with a hyperscaler, following its $17.4 billion deal with Microsoft in September. Nebius said it would deploy the capacity needed for the Meta contract over the next three months, adding that the demand was so strong that the size of the contract had to be limited to the capacity that Nebius had available. Amsterdam-based Nebius is among a group of so-called neocloud companies that offer hardware and cloud capacity as services. Its core business involves providing Nvidia graphics processing units and AI cloud, helping companies expand their AI infrastructure. Nebius and its larger rival CoreWeave have seen strong demand this year as insatiable AI appetite has left even the biggest cloud companies, such as Microsoft and Amazon, with capacity constraints. Nebius reported a 355 per cent jump in revenue to $146.1 million in the third quarter ended September. The company is targeting $7 billion to $9 billion in annualized run-rate revenue by the end of 2026, compared with its ARR of about $551 million at September-end. Its capital expenditures ballooned to $955.5 million in the September quarter, from $172.1 million a year earlier, as the company invests heavily in securing GPUs, land and power. (Reporting by Deborah Sophia in Bengaluru; Editing by Vijay Kishore)

AI cloud firm Nebius signs $3 billion deal with Meta, posts more than four-fold rise in revenue

(Reuters) -Nebius Group has signed a deal worth about $3 billion with Meta to provide the Facebook owner with AI infrastructure over a five-year period, the company said on Tuesday, after it reported a more than fourfold rise in third-quarter revenue. The company's shares seesawed in volatile premarket trading, after it posted a surge in capital spending and a quarterly loss of over $100 million, widening from $39.7 million last year. The stock has been on a strong run this year, with its market value rising fourfold to $27.61 billion, through last close. The agreement with Meta underscores the surging demand for high-performance computing power that is required to build and run artificial intelligence models. It is Nebius' second contract with a hyperscaler, following its $17.4 billion deal with Microsoft in September. Nebius said it would deploy the capacity needed for the Meta contract over the next three months, adding that the demand was so strong that the size of the contract had to be limited to the capacity that Nebius had available. Amsterdam-based Nebius is among a group of so-called neocloud companies that offer hardware and cloud capacity as services. Its core business involves providing Nvidia graphics processing units and AI cloud, helping companies expand their AI infrastructure. Nebius and its larger rival CoreWeave have seen strong demand this year as insatiable AI appetite has left even the biggest cloud companies, such as Microsoft and Amazon, with capacity constraints. Nebius reported a 355% jump in revenue to $146.1 million in the third quarter ended September. The company is targeting $7 billion to $9 billion in annualized run-rate revenue by the end of 2026, compared with its ARR of about $551 million at September-end. Its capital expenditures ballooned to $955.5 million in the September quarter, from $172.1 million a year earlier, as the company invests heavily in securing GPUs, land and power. (Reporting by Deborah Sophia in Bengaluru; Editing by Vijay Kishore)