Nebius delivered another blockbuster quarter, reporting second-quarter revenue of $582 million, up 454% year over year, as demand for artificial intelligence infrastructure continued to outpace available computing capacity.
The company’s AI Cloud business remained the primary growth engine, generating $575 million in revenue, a 514% increase from the same period last year. Nebius also reported adjusted EBITDA of $236 million, representing a strong 41% margin, while annual recurring revenue climbed to $3 billion, up 598% year over year.
Following the results, management raised its target for contracted power capacity at the end of 2026 to 5 gigawatts, underscoring its confidence that demand for AI computing infrastructure will remain exceptionally strong.
Billion-Dollar AI Contracts Drive Growth
Nebius said the rapid expansion was fueled by several major enterprise agreements.
During the quarter, the company signed multiple AI infrastructure contracts worth more than $1 billion each, reflecting continued demand from organizations building and operating large-scale artificial intelligence models.
Management also expects to receive more than $9 billion in customer prepayments during 2026, providing significant funding to accelerate data center construction and GPU deployments.
The combination of long-term contracts and substantial upfront payments gives Nebius unusually strong visibility into future revenue while helping finance one of the industry’s fastest infrastructure expansion programs.
AI Cloud Remains the Core Business
Nearly all of Nebius’ revenue now comes from its AI Cloud platform.
The business provides high-performance computing infrastructure, GPU clusters, networking, storage, and software services used to train and deploy large language models and other AI applications.
As demand for advanced AI models continues to grow, cloud providers with access to power, data centers, and large GPU deployments have become some of the fastest-growing companies in the technology sector.
Nebius has positioned itself as one of the largest independent providers of AI computing infrastructure outside the traditional hyperscale cloud providers.
Infrastructure Expansion Continues
To support growing customer demand, Nebius continues investing aggressively in new AI infrastructure.
The company increased its projected contracted power capacity to 5 GW, reflecting plans to significantly expand data center operations over the coming years.
Power availability has become one of the industry’s most valuable resources as AI developers compete for electricity, GPUs, networking equipment, and advanced cooling systems required to operate next-generation AI clusters.
Management believes current demand continues to exceed available supply, supporting both pricing and long-term utilization.
AI Infrastructure Spending Shows No Signs of Slowing
Nebius’ results add to growing evidence that investment in AI infrastructure remains one of the strongest themes across global technology markets.
Large enterprises and AI developers continue signing multibillion-dollar computing agreements as they race to secure capacity before additional shortages emerge.
With annual recurring revenue approaching $3 billion, expanding profit margins, and billions of dollars in long-term customer commitments, Nebius is positioning itself as one of the largest beneficiaries of the global buildout of artificial intelligence infrastructure.
