AI cloud firm Nebius posts surge in capex on GPU, data centre expenses

Nebius Group reported a sharp rise in quarterly capital spending on Thursday, driven by purchases of artificial intelligence processors and growing data centre investments, as the AI cloud firm rushes ‌to secure ⁠capacity ⁠to meet soaring demand.

The Amsterdam-based company said capital expenditures ballooned to about $2.1 billion in the December quarter, compared with just $416 million in the prior year period, sending its shares down 3% in premarket trading.

Nebius is ⁠one of ‌the major so-called neocloud companies that offer hardware and cloud capacity ⁠as services to other tech firms. Its core business involves providing Nvidia graphics processing units and AI cloud infrastructure.


Along with its larger rival CoreWeave, Nebius has benefited from strong demand this year. The company has struck multi-billion-dollar cloud deals ‌with Big Tech firms including Meta and Microsoft.

Nebius reported a more ​than six-fold ​surge in ⁠revenue to $227.7 million for the fourth quarter, but it still missed estimates of $246.1 million, according ​to data compiled by LSEG.

Its net loss from continuing operations widened to $249.6 million in the quarter from $122.9 million a year earlier.