US stocks: AI cloud company Nebius posts increase in investments in GPU and data center costs

Nebius Group reported a sharp increase in quarterly capital expenditures on Thursday, driven by purchases of artificial intelligence processors and growing investments in data centers, as the AI ​​cloud company races to secure capacity to meet rising demand.The Amsterdam-based company, which counts tech giants Microsoft and Meta among its customers, said it would continue to expand its data center footprint with nine new locations in the US, France, Israel and the UK.

The company’s shares, which rose more than 200% last year, were volatile in early U.S. trading. They were last down about 2%.Nebius is one of the large so-called neocloud companies that offer hardware and cloud capacity as services to other technology companies. Its core business consists of providing ⁠Nvidia processors and ‌AI cloud infrastructure.

Along with its larger competitor CoreWeave, Nebius has benefited from relentless corporate spending on AI in recent years.

“Demand from enterprises and AI customers continues to outpace supply, allowing us to sell future capacity well in advance… We are very focused on investing resources to further expand our capabilities in 2026 both organically and through targeted acquisitions,” Arkady Volozh, CEO of Nebius, said in a letter to shareholders.

Capital expenditures ballooned to about $2.1 billion in the December quarter, compared to just $416 million in the year-ago period. The investments have helped Nebius secure more than 2 gigawatts (GW) of contracted power, well ahead of expectations. It now expects to have more than 3 GW of contracted power by the end of the year, compared to the previous expectation of more than 2.5 GW.

Nebius reported a more than sixfold increase in revenue to $227.7 million for the fourth quarter, but still missed estimates of $246.1 million, according to data compiled by LSEG. Net loss rose to $249.6 million from $133.2 million a year earlier.

The company expects to end 2026 with annualized revenue of $7 billion to $9 billion, up from $1.25 billion at the end of 2025.