Nebius Powers AI Boom Amid $25B Cost | Raleigh News

Nebius Group just snagged a $1 billion AI contract with startup Reflection, signaling a feverish demand for AI computing power that’s outpacing supply. Backed by former Google DeepMind talent, Reflection aims to offer open-source AI alternatives. Nebius, already locked in multi-billion dollar deals with Microsoft and Meta—including a $27 billion five-year pact with Meta—is riding the AI cloud wave, with revenue nearly eightfold higher in Q1 than last year. The company’s contracted power now exceeds 3.5 gigawatts, with a new target of over 4 gigawatts by year-end. But scaling this infrastructure comes at a steep cost: $20–25 billion in capital expenditures forecasted. Nebius has raised cash but is still hunting for more via debt and asset-backed loans, pushing for upfront payments to reduce reliance on borrowing and shareholder dilution. While Nebius is clearly winning the AI infrastructure race, investors are watching closely to see if it can manage the massive build-out without over-leveraging or over-diluting. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/e95c26a6ed8352f0