Nebius Locks in $27 Billion Meta Deal as AI Cloud Revenue Surges 841%

The AI infrastructure arms race has a new front-runner. Nebius Group is pairing a record-breaking revenue quarter with a long-term pact worth up to $27 billion from Meta, sending its stock to an all?time high and validating a capital spending plan that now reaches as high as $25 billion for the year.

The five?year agreement with Mark Zuckerberg’s company provides a solid foundation for Nebius’s aggressive buildout. $12 billion of the total is firm, reserved for dedicated compute capacity, while the remaining $15 billion gives Nebius the flexibility to allocate that capacity either to Meta or to other customers. The deal sharply boosts the visibility of Nebius’s order book and cements its position as a heavyweight among cloud?scale AI providers.

Those capacity commitments come as Nebius delivers quarterly numbers that demolished analyst expectations. The company’s AI cloud segment – now virtually the entire business – generated revenue of nearly $390 million, an eye?popping 841% year?over?year increase. Consolidated revenue for the first quarter reached $399 million, up 684%. The adjusted operating result came in at approximately $130 million.

Reported net income hit $621 million, but that figure was flattered by a $781 million non?cash gain from Nebius’s stake in database company ClickHouse. On an adjusted basis, the company recorded a loss of $100 million, reflecting the high cost of the expansion underway.

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That expansion is accelerating on multiple fronts. Nebius has secured land and power for a second giant AI campus in Pennsylvania, adding up to 1.2 gigawatts of capacity. The news came just a day after the company broke ground on a similarly sized facility in Missouri. Total contracted power now exceeds 3.5 gigawatts, with more than three?quarters of that owned directly by Nebius.

To fund the buildout, the company has dramatically raised its capital expenditure budget for the current year. Nebius now expects to spend between $20 billion and $25 billion, up from an earlier plan of $16 billion to $20 billion. First?quarter capex alone reached roughly $2.5 billion as the company poured funds into new hardware and data centers.

The war chest is well stocked. Nvidia injected $2 billion through an equity investment, and Nebius has issued convertible bonds worth more than $4 billion. Liquid assets on the balance sheet stood at $9.3 billion at the end of March.

Alongside physical infrastructure, Nebius is strengthening its software stack. The company acquired the core development team from AI specialist Clarifai, along with key patents for managing compute processes. The move follows the earlier purchase of Eigen AI.

On the go?to?market side, Nebius has enlisted IT distributor TD Synnex to integrate its AI cloud into the distributor’s own product offerings. With more than 150,000 customers globally, TD Synnex opens a massive sales channel. Nebius aims to bring up to one gigawatt of fully equipped compute capacity online by the end of the year.

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CEO Arkady Volozh offered a vivid picture of current demand: multiple customers are competing for every new graphics processor, leaving supply far behind demand. That dynamic gives Nebius high planning certainty extending into 2027. For the full year 2025, management is targeting revenue above $3 billion, and by 2026 the forecast reaches as high as $3.4 billion.

Investors responded with a 15–16% surge in the stock, lifting it to $205 and marking a new all?time high. The combination of a Meta?backed revenue floor, triple?digit growth in the core business, and a fully funded infrastructure plan has positioned Nebius as one of the most aggressive players in the AI cloud arms race.

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