Wedoany.com Report-Nov. 12, Nebius Group (NBIS.O) announced on Tuesday a $3 billion, five-year agreement with Meta (META.O) to provide AI infrastructure, following a third-quarter revenue surge of more than fourfold. The deal highlights the growing demand for high-performance computing needed to build and operate advanced AI models.

Branding for Nebius at the Nebius AI UK data centre, at Ark Data Centres, in Chertsey, Britain, November 6, 2025.

Despite the revenue increase, Nebius shares fell over 3% in early trading, reflecting a quarterly loss of more than $100 million, up from $39.7 million in the same period last year. The company has been on a strong growth trajectory, with its market value rising fourfold to $27.61 billion as of the last close.

This Meta contract is Nebius’ second with a hyperscaler, following a $17.4 billion deal signed with Microsoft (MSFT.O) in September. The Amsterdam-based company said it will deploy the capacity required for the Meta agreement over the next three months, noting that strong demand forced the contract size to be limited by available infrastructure.

Nebius operates in the neocloud sector, offering cloud capacity and hardware services, primarily focused on providing NVIDIA (NVDA.O) graphics processing units and AI cloud solutions. Its services allow clients to rapidly scale AI infrastructure, meeting growing computational needs.

Nebius and competitors like CoreWeave (CRWV.O) have seen robust demand this year, as the AI boom has created capacity constraints even for major cloud providers including Microsoft and Amazon (AMZN.O).

The company reported third-quarter revenue of $146.1 million, a 355% increase from the prior year, and is targeting $7 billion to $9 billion in annualized run-rate revenue by the end of 2026. At the end of September, its annual recurring revenue stood at about $551 million.

Capital expenditures rose sharply to $955.5 million in the September quarter, up from $172.1 million a year earlier, as Nebius invests heavily in GPUs, land, and power infrastructure to support expansion.

The Meta deal further reinforces Nebius’ position as a key provider of AI infrastructure for hyperscale clients, reflecting the rapid acceleration in demand for specialized computing capacity needed for generative AI and other machine learning applications.

With the AI sector continuing to expand, Nebius’ investments in hardware and cloud services are aimed at ensuring it can meet future demand while building long-term growth potential. The company’s strategic contracts with Meta and Microsoft illustrate the critical role neocloud firms play in supporting the global AI ecosystem.

Overall, Nebius is positioning itself for substantial growth in the AI infrastructure market, leveraging its expertise, high-capacity hardware, and partnerships with leading technology companies to capture opportunities in an increasingly competitive sector.