AI cloud firm Nebius reports near eightfold revenue jump, shares surge

I have been sitting on NBIS for a couple months. Glad to see this news. May 13 (Reuters) - Nebius Group reported a nearly eightfold rise in quarterly revenue on Wednesday, benefiting from rising demand for [artificial intelligence](https://tech.yahoo.com/ai/) ‌infrastructure and cloud services amid a boom in enterprise spending on ‌the technology. Shares of Amsterdam-based Nebius soared 13% in premarket trading. Investments in graphics processing units and data center hardware for its core AI cloud business drove first-quarter capital expenditure to about $2.5 billion, compared with $544 million a year earlier and above analysts' estimate of $2.4 billion, according to Visible Alpha. The company has grabbed a slice of the ‌lucrative AI and cloud infrastructure ⁠market by providing [Nvidia](https://finance.yahoo.com/quote/NVDA/) GPUs and computing platforms to developers. Nebius offers storage, managed tools and software to help customers ⁠build, train and deploy models using its proprietary cloud architecture and in-house hardware. Analysts expect the company to significantly ramp up its data center capacity to 900 MW by the end of this year, which could drive strong revenue growth. However, analysts have ‌flagged its heavy capital spending as a major concern as Nebius aggressively expands its global data center footprint, putting pressure on margins despite strong revenue growth. The concerns mirror those at larger rival CoreWeave, which has projected between $30 billion and $35 billion in capital spending this year, warning that the investments ramp-up ‌could weigh on near-term margins. https://finance.yahoo.com/news/nebius-reports-higher-quarterly-capex-110405106.html