Shares of Nebius (NBIS) rose about 1% premarket on Tuesday after the company announced a deal with Meta Platforms (META) along with its third quarter results.
“Today we are pleased to announce our second large AI infrastructure deal, this time with Meta (META) Our agreement with Meta is valued at approximately $3 billion, with a five-year term,” said Founder and CEO Arkady Volozh in a letter to shareholders.
Volozh said that over the next three months, the company plans to deploy the capacity needed to service the agreement.
“In fact, demand for this capacity was overwhelming, and the size of the contract was limited to the amount of capacity that we had available,” said Volozh.
In September, the company inked an agreement with Microsoft (MSFT) to provide artificial intelligence infrastructure for $17.4B over the next five years.
“Similar to our Microsoft deal, the economics of this agreement are attractive and will help accelerate the growth of our AI cloud business even further in 2026 and beyond,” Volozh added.
Outlook
“Given the scale of the financing that we expect to put in place in the next few months, and the extensive work that we have undertaken to build out our capacity, we believe that we can achieve annualized run-rate revenue (ARR) of $7 billion to $9 billion by the end of 2026,” said Volozh.
Q3 metrics
The Dutch AI infrastructure provider saw revenue for the third quarter ended Sept. 30, surge 355% year-over-year to $146.1M. However, the numbers came in below the consensus estimate of $155.73M.
“Once again, we sold out of available capacity in Q3 — a consistent trend during the year — reflecting strong momentum and the effectiveness of our business strategy,” said Volozh.
The company’s adjusted net loss widened to -100.4M, compared to -$39.7M in the year ago period.