Netherlands-based AI infrastructure firm Nebius announced a significant partnership with Meta Platforms on Tuesday, agreeing to a deal valued at approximately $3 billion over five years. The news sent the company's stock higher, despite a third-quarter financial report that revealed a wider-than-expected net loss and revenue that missed analyst predictions.
The agreement with Meta, which focuses on delivering artificial intelligence compute infrastructure, comes on the heels of another major deal with Microsoft valued at $19 billion. These partnerships underscore the intense demand for specialized cloud computing services designed for AI workloads, even as Nebius navigates its rapid and costly expansion.
Key Takeaways
- Nebius secured a five-year, $3 billion deal to provide AI compute infrastructure to Meta Platforms.
- The company reported a Q3 net loss of nearly $120 million, wider than the $43.6 million loss in the same period last year.
- Quarterly revenue grew 355% to $146.1 million but fell short of the $155 million projected by analysts.
- Nebius also announced an equity offering of 25 million shares to fund data center construction.
- Despite mixed financial results, Nebius stock (NBIS) climbed 6.2% following the announcements.
Strategic Partnerships Fuel Growth
The new agreement with Meta Platforms marks another major milestone for Nebius, positioning it as a critical infrastructure provider for the world's leading technology companies. The five-year, $3 billion contract will see Nebius supply the specialized server capacity Meta needs to develop and run its advanced artificial intelligence models.
This deal follows a landmark $19 billion agreement with Microsoft, solidifying Nebius's role in the competitive AI cloud market. Companies like Nebius specialize in renting out servers equipped with high-demand Nvidia AI accelerators, which are essential for training and deploying large-scale AI systems.
To meet this growing demand, Nebius announced it will issue an equity offering of 25 million class A shares. The capital raised from this offering is earmarked for the construction of new data centers, which are designed from the ground up specifically for the intense computational demands of AI workloads.
The AI Infrastructure Boom
The rise of generative AI has created a surge in demand for specialized computing power. Companies like Nebius and its competitors build and operate data centers filled with thousands of powerful graphics processing units (GPUs), primarily from Nvidia. They then rent this capacity to AI developers, from large tech firms to startups, who need it to build and run their models without the massive upfront cost of building their own infrastructure.
Analyzing the Third-Quarter Financials
While the partnership news was positive, the company's third-quarter earnings report presented a more complex picture. Nebius reported a net loss of nearly $120 million for the quarter ending in September. This represents a significant widening from the $43.6 million loss recorded in the same quarter a year ago.
Wall Street analysts had anticipated a loss, but the final figure was larger than the consensus prediction of $97 million.
On the revenue side, Nebius saw explosive growth, with sales rising 355% year-over-year to $146.1 million. However, this figure also missed market expectations, which were set at $155 million. The company noted that the revenue calculation excluded the discontinued operations of its former AI data firm, Toloka, due to an accounting change.
Financial Snapshot: Q3 2025
- Net Loss: ~$120 million (vs. $43.6 million in Q3 2024)
- Revenue: $146.1 million (up 355% year-over-year)
- Analyst Loss Expectation: $97 million
- Analyst Revenue Expectation: $155 million
Market Reaction and Competitive Pressures
Investors appeared to focus more on the long-term growth potential indicated by the Meta deal than the short-term financial miss. After some initial hesitation in early trading, Nebius stock (NBIS) climbed 6.2% to close at 116.75.
The stock has had a remarkable run in 2025, gaining 264% year-to-date. It has been consolidating since reaching a record high of 141.10 on October 10, finding technical support near its 50-day moving average.
"The market is weighing the massive long-term contracts against the immediate costs of expansion and profitability challenges. For now, growth is winning."
The competitive environment remains intense. Rival firm CoreWeave (CRWV) recently reported strong third-quarter results but saw its stock tumble over 10% after it lowered its full-year revenue and capital spending guidance. The company cited capacity delays from a third-party vendor, highlighting the supply chain and operational risks in the rapidly expanding sector.
Investor Outlook and Analyst Concerns
Despite the strong demand for its services, Nebius faces scrutiny from some market analysts. Key concerns include its high level of debt and a customer base that is heavily concentrated among a few large tech giants. This concentration, while lucrative, exposes the company to significant risk if a major client were to alter its strategy.
Technical ratings reflect this mixed sentiment. The company holds a Composite Rating of 56 out of 99, an average score that blends fundamental and technical metrics. More concerning for some investors is its Accumulation/Distribution Rating of E, which suggests that large institutional investors have been heavily selling the stock over the past 13 weeks.
Nebius's trajectory encapsulates the high-stakes nature of the AI gold rush. The company is securing billion-dollar deals that affirm its technological importance, but it must also manage immense capital expenditures and a path to profitability to sustain investor confidence in the long term.