HUGE $Nebius(NBIS.US) news today, showcasing why they're the premier neocloud:
-> Nebius announces a new business model that lets infrastructure partners deploy Nebius’s AI cloud platform in their own AI data centers.This is so f*cking good.Simply:- Nebius will let partners (e.g. DC developers, infra funds, sovereign AI projects) build + pay for data centres.- Then pair that partner capacity with Nebius's systems, software stackm and customer book. - Meaning that Nebius can expand their capacity "pool" even faster.- With no capex or financing risks like debt/dilution.Also, for Nebius: they get a very high margin rev stream w/ minimal financing requirements.Since the partners will fund all the expensive stuff like the actual building / power / GPUs. And then Nebius supplies genuinely scarce stuff like systems architecture / $NVIDIA(NVDA.US) supply chain access / software stack. And ofc, the GTM strategy w/ access to Nebius's customers.Meaning that Nebius would sell a partner's DC capacity via their own in-house Nebius sales org. With identical service levels to their owned sites.Then, Nebius takes a revenue cut / licensing fees / commissions / committed capacity deals.Unbelievable from Nebius lol.Nebius sells out capacity every quarter and sits on ~$46B of contracted backlog (mainly $Microsoft(MSFT.US) and $Meta Platforms(META.US)).So their main constraint is nothing to do with customers or tech. Rather, their limiting factor has been capital + energized power where every GW costs upwards of billions of dollars. But...this announcement removes the capital constraints to crazy high expansion.
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