Meta Signs a $3 Billion AI Deal With Nebius

Benzinga

Amsterdam-based Nebius Group (NBIS) just signed a $3 billion deal with Meta to provide AI cloud infrastructure—marking one of the biggest partnerships yet in the growing AI arms race.  According to Reuters, the deal spans five years and follows Nebius’ $17.4 billion contract with Microsoft, announced just two months ago.  Here’s what’s happening:  Nebius reported a 355% revenue jump to $146 million in Q3.  Capital expenditures skyrocketed to $955 million as it buys up GPUs, land, and power.  Its valuation has risen fourfold to $27.6 billion.  Despite the growth, Nebius posted a $100 million quarterly loss as it aggressively scales.  The Meta deal highlights the massive demand for high-performance computing power to train and run AI models. With Nvidia GPUs still in short supply and hyperscalers like Microsoft and Amazon near full capacity, companies like Nebius and CoreWeave are stepping in to fill the gap.

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00:00A little-known AI cloud company just signed a $3 billion deal with Meta and barely anyone's

00:05talking about it. According to Reuters, Amsterdam-based Nebius Group struck a five-year

00:10agreement to supply Meta with AI infrastructure. The deal comes just weeks after Nebius landed a

00:16$17.4 billion contract with Microsoft, making it one of the fastest-growing players in the entire

00:22AI infrastructure space. Nebius isn't your typical cloud provider. It's part of a new wave of

00:28NeoCloud companies alongside CoreWeave that specializes in renting out NVIDIA GPUs and

00:34data center capacity to train AI models. And the demand is so strong, Nebius said it had to cap

00:41the size of Meta's deal simply because it's running out of available capacity. The company's stock has

00:47already quadrupled this year, hitting a $27.6 billion valuation, but the rally has been volatile.

00:53Despite posting a 355% jump in revenue last quarter, Nebius also reported a $100 million

00:59loss as it poured nearly $1 billion into GPUs, land, and power expansion. With AI demand skyrocketing

01:07and cloud giants like Microsoft and Amazon hitting capacity limits, smaller firms like Nebius are

01:13quickly becoming the backbone of the AI boom. And if these deals keep coming, it might not stay

01:19little known much longer.

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