From 24/7 Wall St. · Alex Sirois · · 1m
Nebius AI Compute Expansion Prices
Nebius' AI compute expansion drives prices up faster than stock multiples.
In brief
Nebius' AI compute expansion drives prices up faster than stock multiples. Nebius' AI compute expansion increases prices faster than stock multiples. Originally reported by 24/7 Wall St..
Nebius clears capacity auction
Nebius Group cleared a capacity auction at prices that stunned even its own projections.
AI compute pricing power
Short-term contracts negotiate at $40 to $50 million per megawatt versus $20 to $25 million on core deals.
Q2 revenue growth
Q2 group revenue reached $582 million, up 454% year over year.
Customer contracts
Contracts with Meta Platforms and Microsoft valued at up to $27B and $19.4B respectively.
2027 capacity pricing
Nebius could sell today its entire 2027 capacity at current terms.
2027 revenue recognition
Four landmark deals with Reflection, Cohere, a U.S. Neolab, and a large quant firm average over a billion dollars each.
Pricing power vs. multiples
The stock trades at a 44.85 price-to-sales multiple while pricing power accelerates faster than the multiple.
The headline
Nebius' AI compute expansion increases prices faster than stock multiples.
