Aug 12 (Reuters) – Nebius beat quarterly revenue estimates on Wednesday as booming demand for AI infrastructure helped it land larger contracts and increase \u200cprices, sending shares of the cloud-computing company up more than 17% \u200cin early trading. <\/p>\n
The results came a day after larger rival CoreWeave raised its annual forecasts, with \u200bshares of AI infrastructure companies broadly advancing as strong results from both firms reinforced investor expectations that demand for AI computing capacity continues to outstrip supply. <\/p>\n
Revenue at Nebius’ mainstay AI cloud unit rose nearly sixfold, powering overall sales to $582.3 million in \u200cthe second quarter ended June, \u2060which beat estimates of $572.75 million, according to LSEG data. <\/p>\n
Nebius is converting growing demand into “contracted, profitable growth”, CEO Arkady Volozh said. <\/p>\n
The \u2060Nvidia-powered AI cloud provider paired strong customer demand with dealmaking, signing four contracts worth more than $1 billion each on average during the quarter. <\/p>\n
Total contract value nearly quadrupled from \u200bthe prior \u200bquarter, while new-customer contract values jumped more \u200bthan ninefold. <\/p>\n
Capital expenditures totaled about $5.7 \u200cbillion during the quarter, topping analysts’ expectations of $4.7 billion, according to Visible Alpha, as Nebius continued investing aggressively in GPUs and data-center expansion. <\/p>\n
When asked about xAI offering computing capacity at premium prices, a Nebius executive said “all new players coming into the market don’t change the market for us,” adding the company could sell \u200call its planned 2027 capacity at current \u200bterms. <\/p>\n
AI cloud deals signed in the quarter, with \u200bannual contract values above $20 million per \u200bmegawatt, are expected to come online in late fourth quarter, \u200cthe company said. <\/p>\n
It raised its contracted \u200bpower target for the \u200bend of 2026 to 5 gigawatts from more than 4 gigawatts previously and said it expects to deploy more than 1 GW of capacity \u200bannually starting in 2027. <\/p>\n
The \u200ccompany expects more than $9 billion in customer prepayments this year and \u200bsaid it has more than $40 billion in customer commitments. <\/p>\n
(Reporting by Rashika \u200bSingh in Bengaluru; Editing by Vijay Kishore) <\/p>\n","protected":false},"excerpt":{"rendered":"Aug 12 (Reuters) – Nebius beat quarterly revenue estimates on Wednesday as booming demand for AI infrastructure helped…\n","protected":false},"author":2,"featured_media":811208,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,156031,24176,181,507,344231,292187,47064,74],"class_list":["post-811207","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-ai-cloud-provider","tag-ai-infrastructure","tag-artificial-intelligence","tag-artificialintelligence","tag-contract-values","tag-customer-demand","tag-revenue-estimates","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/811207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=811207"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/811207\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/811208"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=811207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=811207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=811207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}