Nebius and CoreWeave Scale AI Cloud Capacity Amid High Demand

AI-optimized cloud computing providers Nebius Group and CoreWeave Holdings Inc. are experiencing surge-level growth driven by the global demand for high-performance computing power. CoreWeave Holdings Inc. reported 112% year-over-year revenue growth in its most recent quarter, reaching $2.1 billion, and is managing a revenue backlog of nearly $100 billion.

Nebius Group saw a 684% year-over-year revenue increase in the first quarter, totaling $399 million. To sustain this momentum, the company plans to expand its data center footprint throughout 2026, aiming to increase its annual run rate to between $7 billion and $9 billion.

Both firms have attracted significant investment from Nvidia Corp. and secured partnerships with major technology companies. Meta Platforms and Microsoft Corporation utilize both providers to acquire additional computing power and rent data center space.

Despite these performance gains, both companies face increased financial risk relative to established cloud giants. Their aggressive expansion strategies rely heavily on debt and the issuance of shares to fund the construction and scaling of new data centers.