This Company Could Be the Amazon of Artificial Intelligence (AI) Infrastructure
July 30, 2025 — 06:55 pm EDT
Key Points
- Nebius Group operates as neocloud, providing access to Nvidia GPU architectures through a flexible infrastructure platform.
- Its services extend into robotaxis, delivery robots, online education, and data labeling.
- Several of Nebius' offerings overlap with those of Amazon and its cloud computing platform.
Nebius and the neocloud
Nebius Group (NASDAQ: NBIS) made its Nasdaq debut last October with little fanfare, emerging as a spinoff from Russian internet giant Yandex. Since then, it secured a $700 million private placement that attracted Nvidia’s interest. Throughout 2025, Nebius has collaborated closely with Nvidia to equip data centers with the latest Blackwell GPU architecture.
Similar to CoreWeave and Oracle, Nebius provides AI infrastructure as a service. It outfits data centers with Nvidia GPUs and rents access to businesses, much like Amazon Web Services (AWS) offers cloud computing resources worldwide.
Currently, Nebius operates data centers in the US, Europe, and Israel. Its core infrastructure platform had a $249 million annual recurring revenue (ARR) run rate by Q1 2025 and projects $750 million to $1 billion ARR by year-end. Considering Nebius has been independent for less than a year, that growth signals strong momentum, especially as Nvidia continues releasing new GPU architectures.
Beyond data centers: A diversified AI ecosystem
Nebius runs three subsidiaries that broaden its AI footprint:
- Avride: Focused on autonomous vehicles and delivery robots, Avride operates a fleet of delivery robots in Tokyo in partnership with Rakuten and is developing robotaxis with Hyundai and Uber, aiming for a Dallas launch later this year.
- Toloka: A data-labeling platform serving clients like Anthropic, Amazon, Shopify, and Microsoft. Toloka supports generative AI applications by providing high-quality labeled data.
- TripleTen: An online education platform offering boot camps in cybersecurity, data science, and software engineering.
While Toloka and TripleTen don't directly compete with Amazon, AWS does offer similar services through Amazon Mechanical Turk and Amazon SageMaker. Avride's autonomous vehicle initiatives resemble Amazon's involvement with robotaxi company Zoox.
Is Nebius stock a buy right now?
Nebius shares have surged 84% in 2025, outperforming major indices like the S&P 500 and Nasdaq Composite. However, this price movement partly reflects broader market volatility. Earlier in the year, Nebius stock dropped due to trade tensions affecting the tech sector. After CoreWeave's IPO and positive earnings reports, Nebius rallied sharply.
Goldman Sachs recently initiated a buy rating with a $68 price target, implying 33% upside. Nebius is building an ecosystem that mirrors Amazon’s model by combining cloud infrastructure with diversified AI applications. Given its early stage and growth potential, Nebius stock presents an attractive opportunity for long-term investors.
Should you invest $1,000 in Nebius Group right now?
While Nebius shows promise, it was not among the top 10 stock picks by leading analysts for 2025. Those selections may offer stronger returns over the next few years. Still, Nebius’ broad AI infrastructure platform and subsidiaries position it well for growth in a market driven by AI adoption.
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