Nebius Shares Slide 4.5% as Q1 Revenue Soars 620% to $400M
Nebius shares dropped 4.5% after Blackstone committed $5 billion with Google to launch a new TPU-based AI cloud venture competitive with existing providers. In Q1, Nebius reported 620% year-over-year revenue growth to $400 million and improved net margin from -74% to -24%, driven by surging unearned revenue.
1. Blackstone and Google Launch $5B AI Cloud Venture
Blackstone is investing $5 billion in equity to form a U.S.-based AI cloud company with Google using Tensor Processing Units, aiming to bring the first 500 megawatts of capacity online by 2027. The new venture offers compute-as-a-service with Google’s TPUs and poses direct competition to Nebius and CoreWeave, triggering a 4.5% decline in Nebius shares.
2. Q1 Earnings Show Explosive Growth
In the first quarter, Nebius delivered $400 million in revenue, a 620% increase year-over-year, and narrowed its net margin loss from 74% to 24%. A significant rise in unearned revenue underscores robust customer demand and marks a shift from infrastructure investments toward revenue realization.