Nebius Group Nearly Doubles in H1 2025 Amid Explosive Growth and Rising AI Demand

Nebius Group, a European AI neocloud, nearly doubled in the first half of 2025, with a 99.7% increase in share value. The company, backed by Nvidia, showed explosive growth due to its access to Nvidia GPUs and expertise in running AI GPU infrastructure. Nebius' revenue growth reached 385% in Q1, with annualized recurring revenue (ARR) increasing to $249 million. The company's investment in Toloka, an expert data provider to AI companies, further solidified its position in the AI market.

Nebius Group, a European AI neocloud, experienced a remarkable surge in the first half of 2025, with its share value nearly doubling. The company, backed by Nvidia, demonstrated explosive growth due to its access to Nvidia GPUs and expertise in running AI GPU infrastructure. Nebius' revenue growth reached 385% in Q1, with annualized recurring revenue (ARR) increasing to $249 million. The company's investment in Toloka, an expert data provider to AI companies, further solidified its position in the AI market.

Nebius Group's core strength lies in its full-stack AI cloud platform, which combines cutting-edge GPU hardware, scalable data centers, and AI development tools. The company's decision to build data centers in geographies like Iceland and Kansas City, where energy costs are lower, gives it a unit economics edge. Deploying NVIDIA's B200 and Grace Blackwell chips in these hubs reduces compute costs while boosting efficiency. The company's partnerships with tech giants further amplify its value [2].

The AI infrastructure race is accelerating, and Nebius Group is positioning itself as a front-runner. With a unique value proposition in GPU-as-a-Service (GPUaaS), a diversified revenue engine, and rapid global expansion, Nebius is capitalizing on the $500 billion AI compute opportunity. Yet, its path to dominance isn't without challenges—from intense competition to execution risks. This analysis explores whether Nebius's strategic bets and financial scalability justify its status as a long-term winner.

References:
[1] https://cryptorank.io/news/feed/7af70-aws-builds-custom-cooling-tech-for-nvidia
[2] https://www.ainvest.com/news/nebius-group-nbis-leading-ai-compute-revolution-through-strategic-infrastructure-and-diversification-2507101061ea0b05642ceb77/