Nebius reports 514% surge in second-quarter cloud sales as AI demand accelerates

Nebius Group, the AI-focused cloud infrastructure company trading on Nasdaq, posted a 514% increase in second-quarter cloud sales, powered by demand for GPU computing resources across the AI industry. The number is eye-catching on its own, but it’s actually a deceleration from the company’s Q1 2026 performance, where AI cloud revenue hit $389.7 million for an 841% year-over-year increase. A revenue engine built almost entirely on AI In Q1 2026, the company pulled in $399 million in total revenue, a 684% jump compared to the prior year. Of that, $389.7 million came from AI cloud services — roughly 98% of total revenue flowing from a single business line. For the full year 2026, Nebius is guiding for revenues between $3B and $3.4B with an approximately 40% adjusted EBITDA margin. The company is also targeting an annualized run-rate revenue of $7B to $9B. The deals fueling the rocketship Two partnerships stand out as the structural pillars supporting this growth. The first is a long-term agreement with Meta valued at approximately $27B. The second is a strategic alliance with NVIDIA, which has enabled Nebius to rapidly expand its GPU cluster capacity across both Europe and the United ...