Nebius Group Poised to Compete with Amazon in AI Infrastructure

Nebius Group is emerging as a significant player in the AI infrastructure sector, drawing attention for its potential to rival established giants like Amazon. Operating under the neocloud model, Nebius provides access to Nvidia’s GPU architectures, which is critical for AI development. The company has diversified its service offerings to include robotaxis, delivery robots, online education, and data labeling, broadening its market reach and capabilities.

Founded as a spinoff from Yandex, Nebius recently completed a notable $700 million private placement with Nvidia, highlighting its rising prominence. The company reported an annual recurring revenue (ARR) run rate of $249 million, with projections to hit between $750 million and $1 billion by year-end 2025. This growth is fueled by its data centers located in numerous countries, including the USA, Iceland, and Israel, and its operation of several subsidiaries: Avride (autonomous tech), Toloka (data labeling), and TripleTen (online education).

Nebius's stock has seen a remarkable rise of 84% this year, significantly outperforming major indices like the S&P 500. Investor confidence has surged, particularly following positive earnings reports and recognition from analysts such as Goldman Sachs, which set a $68 price target for the stock, indicating robust future growth potential. Analysts are drawing parallels between Nebius’s trajectory and that of Amazon in its early days of cloud service expansion, hinting at a promising roadmap ahead for the company.