Overview
- Nebius signed a roughly $3 billion, five-year agreement to supply Meta with AI infrastructure, with deployment of the committed capacity slated over about three months and sized to what the company has available.
- Third-quarter revenue rose 355% year over year to $146.1 million as all available capacity was sold, while the net loss widened to about $119.6 million and sales came in below Wall Street estimates.
- Capital expenditures surged to $955.5 million as Nebius invested in GPUs, land and power, and the company raised its contracted power goal to approximately 2.5 gigawatts by the end of 2026.
- Management reiterated an annualized run-rate revenue target of $7 billion to $9 billion by year-end 2026, launched an at-the-market program for up to 25 million Class A shares, and said it is evaluating asset-backed and corporate debt financing.
- The Meta pact is Nebius’ second hyperscaler deal after a $17.4 billion Microsoft agreement in September, and shares were volatile as investors weighed growth prospects against funding needs and guidance.