Nebius Group on Wednesday reported a sharp rise in quarterly revenue as demand for artificial intelligence infrastructure and cloud computing services continues to grow rapidly.
The Amsterdam-based company said first-quarter revenue rose to $399 million, from $50.9 million a year earlier.
The result exceeded analyst expectations of $371.4 million, according to LSEG data.
Nebius shares rose 13 percent in premarket trading after the earnings release.
The company is investing heavily in graphics processing units, data centers, and cloud infrastructure to support AI developers and enterprise customers.
First-quarter capital spending reached nearly $2.5 billion, compared with $544 million a year earlier.
Nebius provides access to Nvidia GPUs, cloud computing platforms, and software tools used to build and deploy AI models.
Analysts expect the company to significantly increase its global data center capacity by the end of the year, which should fuel future growth.
However, some analysts have warned that the company’s aggressive spending could put pressure on profit margins in the near term.
Nebius recently announced a $643 million deal to acquire startup Eigen AI and also signed a long-term agreement with Meta worth up to $27 billion over five years to provide computing capacity.
At The News Digital, our editors combine an understanding of entertainment with global reporting expertise. Expect authoritative coverage of royals, Hollywood and trending topics, as well as clear, credible updates on science, politics, sports and business. We keep it accurate, current and easy to understand, so you can stay ahead.
