Nebius Group NV Outperforms CoreWeave in AI Cloud Growth and Profitability
Nebius Group NV reported a strong quarter, with revenue skyrocketing 454% to $582.3 million, significantly outperforming CoreWeave's 112% revenue growth to $2.58 billion. While CoreWeave reported a net loss of $626 million, Nebius Group NV achieved a profit of $236.2 million in adjusted EBITDA. Nebius Group NV is expanding rapidly, signing four major AI cloud deals valued at more than $1 billion each. The company holds a healthier balance sheet with $8 billion in cash against $8.5 billion in debt, compared to CoreWeave's $35.6 billion in debt. CoreWeave CEO Michael Intrator noted that customer demand is accelerating as enterprise adoption broadens. Despite high capital expenditures, both companies are scaling infrastructure to meet the demand for AI compute. Nebius Group NV is expected to reach sustained profitability quicker than CoreWeave, which is currently scaling on expensive debt. Analysts have issued a "Moderate Buy" rating for both firms, reflecting a bullish outlook on the AI infrastructure market.