Nebius Group Projects $3.4 Billion Revenue Amid Rapid AI Growth

Nebius Group is scaling its AI cloud operations, reporting first-quarter revenue of $390 million, an 841% increase year-over-year. The company currently holds a market capitalization of approximately $48.6 billion, which is roughly 55 times its trailing 12-month revenue of $877.9 million.

Management projects total group revenue for the current year will reach between $3 billion and $3.4 billion, targeting an exit run rate of $7 billion to $9 billion and an adjusted EBITDA margin of approximately 40%.

To support this expansion, the company plans $20 billion to $25 billion in capital expenditures this year. These investments are funded through a senior secured debt facility, convertible notes, and equity from Nvidia Corporation. Meta Platforms Inc. has further supported the growth through a second agreement with Nebius valued at up to $27 billion.