Nebius Reports Q3 Loss but Secures Multi-Billion-Dollar Meta AI Deal

Nebius Group reported a wider net income loss in the third quarter of 2025 but paired the results with a major win, announcing a multi-billion-dollar AI infrastructure deal with Meta Platforms. The results reflect both the company’s growing position in the global AI infrastructure market and the heavy costs of its rapid expansion.

Financial Results Show Mixed Performance

Revenue in the third quarter rose about 355% year over year to 146.1 million dollars, but this figure came in below analyst expectations of roughly 155 million dollars. Net loss deepened to about 120 million dollars, up from around 43 million dollars in the same quarter a year ago. 

The company said high capital expenses of nearly one billion dollars during the quarter were mainly tied to new data center construction and GPU cluster investments.

The Meta Partnership

Alongside its earnings report, Nebius confirmed a five-year, three-billion-dollar deal with Meta Platforms to provide cloud and AI infrastructure. The agreement includes advanced GPU resources that will help Meta scale its next generation of large language models. 

The announcement follows Meta’s growing push to diversify its computing capacity after earlier reliance on major hyperscale providers.

This partnership could position Nebius as a strong alternative in the high-performance cloud computing sector. Similar strategic deals have shaped recent moves by other firms, such as Snap’s collaboration with Perplexity AI and Google’s talks to expand its investment in Anthropic. Each reflects how technology companies are diversifying partnerships to maintain flexibility in AI development.

Market Context and Reaction

Nebius’s announcement arrived during a volatile period for AI infrastructure providers. The sector has seen heavy spending as companies race to secure GPUs and power capacity. Shares of Nebius rose modestly after the Meta news despite the wider loss, signaling investor confidence in its long-term strategy.

This trend mirrors other market responses to infrastructure-focused firms such as CoreWeave, which recently faced pressure as AI hype cooled. Like Nebius, these firms are navigating a balance between rising demand and steep capital requirements. 

Analysts note that Nebius’s concentration on large clients like Microsoft and Meta brings stability but also increases dependency on a few partners for growth.

Industry Outlook

Demand for AI infrastructure continues to grow as companies seek greater computing capacity. Nebius has projected an annualized revenue run rate of up to nine billion dollars by the end of 2026, driven by its existing contracts and upcoming expansions. 

The company’s approach contrasts with traditional cloud providers by focusing narrowly on high-performance clusters tailored to machine learning and data processing tasks.

Analysts point out that similar focus areas have supported growth at other chip and hardware leaders, such as TSMC’s strong revenue rise from AI chip demand. However, maintaining profitability amid such rapid scale remains a challenge, particularly as global competition in AI infrastructure intensifies.

Conclusion

The Meta contract could prove to be a defining moment for Nebius, giving it visibility and credibility among top technology firms. Still, the company’s widening loss and high capital needs underline the difficulty of achieving sustainable margins in a capital-intensive sector. 

Investors and analysts will be watching the next two quarters closely to see whether operational efficiencies begin to offset the current burn rate.

Nebius’s next steps will determine how effectively it can convert large contracts into stable cash flow while continuing to expand its footprint in the AI computing landscape. 

For now, the company’s mix of strong growth and mounting costs captures the current reality of the AI infrastructure race, one that rewards scale but tests financial discipline.