Nebius is experiencing higher-than-expected prices for AI computing, according to Marc Boroditsky, the company's chief revenue officer. This positive outlook comes as investors express concerns about the neocloud sector, particularly following CoreWeave's recent spike in borrowing costs.
While CoreWeave's financial struggles have negatively impacted the stock prices of other neocloud companies like Iren and Nebius, Boroditsky emphasized that Nebius is not burdened by similar debt levels. He expressed confidence that if the company achieves its projected capacity for 2027, it would sell out, with a similar demand expected for 2028.
The rising price per megawatt, a critical metric for cloud companies, indicates that Nebius can charge more for its computing capacity. Additionally, Chase Lochmiller, CEO of Crusoe, noted that prices for older Nvidia GPUs are also increasing, which is crucial for AI infrastructure firms to recoup their investments.
The recent ninefold revenue increase in SpaceX's AI business to $7.56 billion further supports the notion of strong demand in the market, positively influencing Nebius's stock and those of its peers. Boroditsky highlighted that the market remains dynamic, with supply not keeping pace with demand, reinforcing the bullish sentiment for Nebius and the neocloud sector overall