Below is a tweet discussing Nebius’s subsidiary Avride, so it’s not really new information for those who have been following the company. Quite a lot of repetition, then.
The tweet states that the company is a pioneer in autonomous driving, developing both self-driving vehicles and robot deliveries. Its technology has been tested in demanding conditions and has proven its safety. The company has managed to invest efficiently, even in terms of costs, and is capable of expanding without significant cash flow risk. By 2026, the goal is to expand to several cities and significantly increase the number of vehicles and robots. Strategic partners also support this development.
Rakuten, Nebius Avrid’s partner, is expanding its robot deliveries to its main online store to address the driver shortage. The service has already been tested in Tokyo, and partners include Yoshinoya and Starbucks.
Nebius achieved a gold level in SemiAnalysis’s GPU Cloud ranking, and this level highlights the company’s affordable prices, efficient data center utilization, and proprietary server technologies, which offer excellent conditions for small and medium-sized businesses.
Below is a tweet explaining how Nebuius’s competitive advantage is based on strong engineering expertise and customized server configurations, which the company designs in collaboration with NVIDIA.
The servers are optimized for future chip technologies, which reduces costs, improves reliability, and minimizes downtime. According to this tweet, this brings the company a significant efficiency and cost advantage compared to other cloud service providers.
Nebius’s balance sheet is large compared to its revenue. This indicates that the company is still in the startup phase. The company’s book value per share is around 14 euros, and the cash balance per share is 10.39 euros. In a way, a short-term floor for the stock can ultimately be found in at least those figures. Currently, the stock is trading around 22 euros. And so, the company is net debt-free, with a cash balance of 2.4 billion after debts. So, there should still be a long way to bankruptcy, if one starts to think about it now.
Last Friday, Coreweave indeed went public, securing the top spot in that evaluation. Nebius also took quite a hit on Friday, and my interpretation was that some market participants probably switched their Nebius shares to Coreweave when the opportunity arose.
That article contains a lot of technical information that was difficult for me to understand as an outsider to the field, but it also discusses things that are clear and especially relevant for investors. Here are a few key points about Nebius:
Nebius is notable for providing the lowest pricing in the GPU cloud market, enabled by their financial position. With billions of dollars on their balance sheet and no existing debt, they benefit from abundant financial resources and significant maneuvering room.
One of Nebius’s key strategies for maintaining such low prices is its commitment to using custom Original Design Manufacturer (ODM) chassis. By designing hardware internally and partnering directly with Original Design Manufacturers (ODMs), Nebius bypasses traditional OEM providers like Dell and Supermicro, which typically apply gross margins of around 10-15%. Nebius’s ODM strategy significantly reduces gross margins to about 2%, dramatically lowering both initial hardware investments and ongoing operating expenses, such as power consumption. This cost efficiency places Nebius uniquely among non-Hyperscalers providers, as they adopt an optimization typically only seen within hyperscale cloud providers.
Also a slightly more negative angle:
Despite offering on-demand NVIDIA H100 GPUs at roughly $1.50 per hour (at least for the first thousand hours per month) —half the cost charged by competitors like Lambda Labs—Nebius struggles with customer adoption. Many users still prefer Lambda Labs primarily because Nebius’s UI and UX remain overly complex and unintuitive, creating friction that deters less technically inclined customers. Nebius is committed to fixing its UI/UX issues.
This point, that customers are willing to pay more for Lambda’s service, does bother me a bit. This must therefore be a clear shortcoming in Nebius’s offering. Pricing power is, in my opinion, important for an investment target, and this is clearly not being realized in Nebius’s case. As mentioned earlier, the cash position is strong, and hopefully, improvements will be made through product development. One more additional observation. Although Nebius’s team has, to my understanding, severed ties with the Putin administration, I don’t think they are in a very strong position, at least in the United States, to win state-backed deals. I believe that, as is their custom, Americans will favor American companies, and deals will go to, for example, Coreweave, which, according to that article, also has the best offering among all competitors.
CoreWeave, on the other hand, has a heavy debt burden. Of course, Nebius is only at the beginning of its development curve, and CoreWeave has probably already gained a good foothold. I also checked Supermicro’s balance sheet. Even there, the debt is much less than CoreWeave’s. Because of the debt burden, I personally skip CoreWeave, as with debt-free companies, one dares and has the patience to sit through market crashes, as I experienced in 2022.
Nebius is one of the most interesting trading stocks on my list due to the strong price movements it offers. NBIS filled the gap ($22.93-$24.76) late last week and is now within the closed gap. The stock has been heavily shorted recently, so rises are also fast when short positions are closed. Currently, the number of IBKR’s shortable (i.e., available for lending) shares is 5,625,338, whereas in recent weeks, the number of shares available for lending hovered around 3,200,000 – 3,500,000 shares. Somewhat positive speculative news below.
European countries, such as the Netherlands, are trying to break free from dependence on US technology companies.
The Netherlands is considering its own cloud services and favoring European operators – benefiting, for example, Nebius, which operates in the Netherlands!
Data center investments will increasingly focus on AI computing in the future, according to the tweet below.
According to the tweet, centers built for AI use, such as those developed by this company, will benefit from this trend. Spending directed towards AI will surpass traditional data centers by 2031, with an annual growth rate of 22.9 percent.
Below is a comprehensive analysis of Nebius, so some of it will inevitably be familiar. Here’s a summary of it:
Nebius Group has quietly emerged as one of the most interesting names in the AI infrastructure field. The company is building its own AI-optimized cloud environment and is rapidly expanding its capacity in both Europe and the United States. Although DeepSeek’s release caused a stock price collapse, the price has since recovered. Nebius has continued its growth with strong capital and without debt. The company’s customer base is widely diversified, and its competitive advantage is based on its own infrastructure and high engineering expertise. CoreWeave’s IPO raised questions about overall industry demand, but Nebius stands out due to its own data centers and long-term efficiency, among other things. The outlook is strong and the valuation level attractive.
“Nebius has hundreds of AI/ML engineers with over a decade of cloud experience. Unlike most cloud providers, they design their own racks — a key advantage.”
Below is a long text about Nebius; it’s worth reading the whole thing, even though I’ve summarized some points below.
According to the article, the company has emerged as an interesting challenger among cloud platforms for AI developers. It builds almost everything itself – from data centers to the software layer – and offers a flexible, high-performance, and cost-effective environment, especially for AI training and inference needs.
Nebius invests in its own hardware design and utilizes the latest NVIDIA components, which provides a technical advantage and savings. Several AI startups and research organizations have become Nebius customers due to its clarity, scalability, and customer-centric approach, among other reasons.
Nebius also offers an inference service that supports open LLM models, among others. Overall, it is a rapidly growing neocloud service that serves both small development teams and advanced enterprise customers, and it does so without the bureaucracy or pricing structures typical of hyperscalers.
According to the article below, Nebius is expanding its AI infrastructure to Southeast Asia.
At GITEX Asia 2025, the company will showcase its cloud solutions, support startups with its Nebius for Startups and AI Lift programs, and also offer GPU and inference credits to competition winners.
The company closed a funding round of USD $700 million in December 2024 with backing from investors such as NVIDIA and Accel. In 2024, Nebius reported 462% year-on-year revenue growth and stated aims to achieve annual recurring revenue of up to USD $1 billion by the end of 2025. SemiAnalysis, an independent industry analysis portal, recently awarded the company Gold status in its GPU Cloud ClusterMAXTM Rating System.
Yes, Cunha’s article is quite a Nebius fireworks display. Cunha’s article emphasizes that Nebius is flexible and customizes the data center precisely to the customer’s needs. Spring has been quiet regarding news, and securing larger deals has probably been delayed due to the confusing economic situation caused by Trump. But Nebius’s strong cash position is precisely now an excellent buffer and provides room to maneuver in these difficult times. We will probably hear the biggest news/deals after the summer.
The tweet below highlights that Nebius offers a comprehensive range of AI services on a single platform, from data preparation to model deployment, which reduces the need for multiple vendors, streamlines operations, simplifies processes, and improves return on investment.
There’s quite a bit of overlap with messages already brought up in this thread, but I often read about the same or similar things from different sources and observe how people emphasize and highlight them.
This tweet discusses Nebius’s release of its 2024 revenue figures by unit.
Avride is not yet generating significant revenue, but its long-term potential in self-driving technology is substantial. Toloka provides valuable and high-quality data for AI labs. TripleTen focuses on retraining employees for the AI era.
Nebius also holds a significant 28% stake in ClickHouse, one of the world’s leading database technology software companies.
Nebius welcomes Bezos Expeditions as lead investor in AI data business Toloka
Enables significant and rapid scaling of Toloka’s business to capitalize on substantial market opportunity in AI data
Positions Toloka among top tier of AI data companies globally, backed by world-class strategic investors
Secures long-term potential upside for Nebius shareholders from growth of Toloka’s business
Gives Toloka greater flexibility and independence in governance
As a result of Nebius ceasing to hold majority voting power in Toloka, it will no longer include Toloka’s results in Nebius’ consolidated financial statements and will instead report its stake in Nebius’ equity investments from the closing date. Nebius will provide more details on its upcoming earnings call on May 20, 2025.
