The landscape of AI infrastructure is rapidly evolving, and Nebius is making bold moves by leveraging major contracts with industry giants like Microsoft and Meta. But here’s where it gets controversial: as this sector heats up and valuations soar, is the rush to dominate the AI data center market sustainable, or are we heading toward a bubble?
Based in the Netherlands, Nebius is strategically expanding its presence across Europe and the United States, focusing on building an extensive and high-capacity AI-specific data infrastructure. Their recent collaborations with Microsoft, which signed a $17 billion deal in September, and Meta, worth an additional $3 billion, have skyrocketed the company's stock by an astonishing 248% this year. With these deals, Nebius has catapulted into the spotlight, pushing its market capitalization beyond $25 billion.
The company's co-founder, Roman Chernin, emphasizes that Nebius is now broadening its customer base—particularly as fears of an impending AI bubble continue to circulate in the investment community. He remains optimistic, asserting, “We are very bullish.” He further explains that while technological revolutions often experience natural fluctuations, the demand for companies capable of providing AI infrastructure could grow exponentially—by ten times, perhaps even a hundredfold—as more firms begin to incorporate large AI models that are themselves evolving at a rapid pace.
In an environment where smaller players are often squeezed out by larger hyperscalers like Amazon and Google, Nebius is positioning itself as a resilient challenger. The firm is investing in high-margin services and forging long-term relationships, preparing for what they call the inevitable “winter,” during which market conditions might tighten. Chernin sees this period as an opportunity: ‘Nebius can become a consolidator when others retreat.’
But here’s the part most people miss: Traditional industries are just starting to engage with Nebius’ services—think manufacturing, retail, banking, along with faster-moving sectors like pharmaceuticals and finance—boosting the firm's position as Europe's largest 'neocloud' provider. Partnered with Nvidia, Nebius specializes in offering access to the powerful GPU hardware essential for AI processing. Not only does it supply the physical infrastructure, but it also provides the critical software that enables clients to run complex AI applications efficiently.
While the U.S. remains Nebius’ dominant market, it’s also expanding its footprint across Europe, with data centers in the UK, Iceland, Finland, and France. The firm aims to secure around 2.5 gigawatts of power capacity by the end of 2026—reflecting robust customer demand. Interestingly, sales of capacity to European 'neocloud' providers grew by 211% in the first nine months of 2025, highlighting the sector’s explosive growth.
Managing margins over mere revenue appears to be Nebius’ key strategic focus. Chernin notes, “When negotiating hyperscaler deals, our priority is margins because these relationships are part of a larger system designed to finance further expansion.” Post-Microsoft deal, Nebius raised over $4 billion through a public offering and convertible notes, underpinning its aggressive growth plans.
Initially, Nebius’ clientele consisted of AI-native startups, such as French model creator Mistral, U.S. coding firm Cursor, and German AI visual company Black Forest. Looking ahead, the company expects its growth in 2026 to come from digital pioneers like Shopify, Prosus, and ServiceNow—firms that traditionally relied on U.S. cloud giants but now see the advantages in Nebius’ specialized AI infrastructure, confirming its strategic approach.
Beyond 2027, Chernin envisions Nebius becoming a critical backbone for larger, mainstream corporations—such as Siemens and BMW—whose need for large-scale AI adoption will be vital for European technological sovereignty. He emphasizes that the firm’s true mission is to be an enduring presence within this evolving market: “Where will these major companies go when they need AI at scale? Our North Star is to be the go-to provider for that future.”
As this sector continues to develop rapidly and attract enormous investments, the question remains: is Nebius’ aggressive expansion sustainable, or are we simply riding a bubble driven by hype and soaring valuations? The debate is open—what do you think? Are these valuations justified given the transformative potential of AI, or are we heading toward a market correction? Share your views below and join the conversation.
