AI cloud firm Nebius signs $3 billion deal with Meta, posts more than four-fold rise in revenue

(Reuters) -Nebius Group has signed a deal worth about $3 billion with Meta to provide the Facebook owner with AI infrastructure over a five-​year period, the company said on Tuesday, after it reported a more ‌than fourfold rise in third-quarter revenue.

The agreement with Meta underscores the surging demand for high-performance computing power that ‌is required to build and run artificial intelligence models.

It is Nebius’ second contract with a hyperscaler, following its $17.4 billion deal with Microsoft in September.

Nebius said it would deploy the capacity needed for the Meta contract over the next three months, adding that the demand was ⁠so strong that the size of ‌the contract had to be limited to the capacity that Nebius had available.

Amsterdam-based Nebius is among a group of so-called neocloud companies that offer ‍hardware and cloud capacity as services. Its core business involves providing Nvidia graphics processing units and AI cloud, helping companies expand their AI infrastructure.

Nebius and its larger rival CoreWeave have seen strong demand this ​year as insatiable AI appetite has left even the biggest cloud companies, such as ‌Microsoft and Amazon, with capacity constraints.

Like Nebius, CoreWeave has also signed several multi-billion-dollar deals with companies, including Meta and ChatGPT maker OpenAI.

Nebius also reported a 355% jump in revenue to $146.1 million in the third quarter ended September.

The company is targeting $7 billion to $9 billion in annualized run-rate revenue by the end of 2026, ⁠compared with its ARR of about $551 million at the ​end of September.

“The only real limitation on ​our revenue growth in 2025 has been the amount of capacity that we have been able to bring online,” founder and CEO Arkady Volozh said ‍in a letter to ⁠shareholders.

“In the last few months, we have worked very hard to unlock this bottleneck, and we will continue doing so in 2026.”

Its capital expenditures ballooned ⁠to $955.5 million in the September quarter, from $172.1 million a year earlier, as the ‌company invests heavily in securing GPUs, land and power.

(Reporting by Deborah ‌Sophia in Bengaluru; Editing by Vijay Kishore)