Nebius Expands AI Cloud in Europe With NVIDIA GB200 and Blackwell

Nebius Group (NBIS) is expanding its AI Cloud platform in Europe with NVIDIA's GB200 Grace Blackwell Superchip, becoming the first Europe-based Reference Platform NVIDIA Cloud Partner. This expansion includes new integrations with NVIDIA's AI ecosystem, such as NVIDIA AI Enterprise software and early access to Blackwell architecture, supporting sovereign AI initiatives within EU regulatory standards. Nebius reported a 385% year-over-year revenue surge in Q1 2025, driven by its AI business, and anticipates full-year ARR of $750 million to $1 billion, reflecting strong momentum in the AI cloud market.

Analysis

Nebius Group (NBIS) is strategically enhancing its AI Cloud presence in Europe through the integration of NVIDIA's GB200 Grace Blackwell Superchip, positioning itself as the first Europe-based Reference Platform NVIDIA Cloud Partner. This expansion is complemented by new integrations with NVIDIA’s AI ecosystem, including NVIDIA AI Enterprise software, early access to the NVIDIA Blackwell architecture via NVIDIA DGX Cloud Lepton, and the first European availability of NVIDIA Hopper GPUs through the Brev platform, with RTX PRO 6000 Blackwell Server Edition instances planned for later this year. These initiatives align Nebius with EU AI objectives and cater to sovereign AI projects, exemplified by its collaboration on Milestone Systems’ Project Hafnia, ensuring data processing and storage remain within the EU. Financially, Nebius reported a significant 385% year-over-year revenue increase in Q1 2025, fueled by its core AI operations, and a 700% surge in annualized run-rate revenue (ARR), which reached $310 million in April, indicating a strong start to Q2. The company reaffirmed its full-year 2025 ARR guidance of $750 million to $1 billion and revenue guidance of $500 million to $700 million. Infrastructure enhancements, including an estimated 5% improvement in node availability from Slurm-based cluster upgrades and improved object storage, aim to reduce downtime and accelerate model training. Despite this strong operational and financial momentum, which has driven a 64.4% stock price increase in the past six months, outperforming the Zacks Internet - Software and Services industry's 25.2% growth, Nebius currently holds a Zacks Rank #3 (Hold).

Key Decisions for Investors

• Investors should monitor Nebius's execution against its ambitious full-year 2025 guidance, particularly the $750 million to $1 billion ARR target, given the rapid revenue acceleration and significant investments in its AI cloud infrastructure.
• Considering the substantial 64.4% share price appreciation over the last six months and the current Zacks Rank #3 (Hold), it is prudent to assess if the current valuation fully incorporates the strong growth prospects and recent positive developments.
• Continued focus should be placed on Nebius's ability to leverage its NVIDIA partnership, especially with the new GB200 and Blackwell technologies, to capture market share in the European AI sector and successfully deliver on sovereign AI initiatives compliant with EU regulations.