Nebius Group N.V. shares rallied 5.3% to $142.73 in regular U.S. trading on Wednesday, as investors zeroed in on the AI cloud company's deepening ties with Meta Platforms. The move came after Meta raised its 2026 capital spending forecast by up to $10 billion, citing higher data center costs and pricier components. The revised outlook now stands at $125 billion to $145 billion, up from $115 billion to $135 billion.
The capital expenditure boost underscores Meta's aggressive push into AI infrastructure, a trend that directly benefits Nebius. In March, the Amsterdam-based firm inked a deal with Meta that could be worth up to $27 billion. Under the agreement, Meta will purchase $12 billion in dedicated cloud capacity starting in early 2027, with an option to add as much as $15 billion more over five years if Nebius cannot secure other buyers.
Nebius reported fourth-quarter 2025 revenue of $227.7 million, a 547% year-over-year jump, but posted a net loss from continuing operations of $249.6 million. The company's capital expenditures on property and equipment soared to $4.07 billion in 2025, reflecting its rapid build-out of data centers and GPU clusters.
To fund its expansion, Nebius raised $4.3375 billion in March through a convertible-note offering. The proceeds are earmarked for data centers, GPUs, its full-stack AI cloud platform, and scaling its global footprint. Convertible notes are debt instruments that can later be converted into equity, providing flexibility for growth-stage companies.
Tom Blackwell, Nebius's chief communications officer, told Reuters after the debt raise that the company is "well-funded" for its 2026 capital spending plans of $16 billion to $20 billion. He added that large customer contracts can serve as "a very efficient source of capital" with proper structuring.
The expansion is accelerating on both sides of the Atlantic. On March 31, Nebius announced plans for a 310-megawatt AI factory in Lappeenranta, Finland, with first capacity expected online by 2027. CEO Arkady Volozh described the project as a "significant addition" to the company's global infrastructure strategy.
Nebius is also evolving beyond simple GPU leasing. Its AI Cloud 3.5 update introduced serverless AI capabilities, allowing developers to deploy workloads without managing backend infrastructure. The platform also expanded GPU options for inference, giving users more flexibility when running trained models.
Nvidia's partnership adds another dimension. On March 11, Nvidia announced a $2 billion investment in Nebius and plans to collaborate on future hyperscale cloud projects spanning multiple Nvidia infrastructure generations. Jensen Huang, Nvidia's CEO, characterized the moment as "another inflection point" for AI.
Despite the growth trajectory, risks remain significant. Nebius's annual filing flags competition from CoreWeave, Crusoe, and Lambda. The company burns through capital, has yet to achieve profitability, faces pricing pressure, and must secure power, GPUs, and continued funding on favorable terms.
