Figma Shares Indicated To Open $105/$110
AMSTERDAM - Nebius Group N.V. (NASDAQ:NBIS), an AI infrastructure company, has announced the launch of its first GPU cluster in the United States, situated in Kansas City, MO. This development is part of Nebius's strategy to cater to the American market, with the cluster expected to be operational in the first quarter of 2025.
The Kansas City GPU cluster will initially feature thousands of NVIDIA (NASDAQ:NVDA) GPUs, including the H200 Tensor Core GPUs, and is designed to be energy-efficient, utilizing the NVIDIA Blackwell platform. The site has the potential to expand its capacity from 5 MW to 40 MW, which could accommodate approximately 35,000 GPUs.
In addition to the Kansas City cluster, Nebius has established new customer hubs in San Francisco and Dallas, which have been operational since September. A third office in New York is slated to open by the end of this year. These efforts are a testament to Nebius's commitment to expanding its presence in the US and positioning itself as a leading provider of AI infrastructure on a global scale.
Arkady Volozh, founder and CEO of Nebius, emphasized the importance of serving American customers from local facilities to ensure lower latency and maximize the advantages of Nebius's AI-native cloud. The company is also in advanced discussions to establish a second, larger-scale GPU cluster in the US, which is also expected to be launched in 2025.
Nebius's AI-native cloud is designed to manage the full machine learning lifecycle and is built upon the latest NVIDIA GPUs, with a full-stack AI infrastructure that includes both hardware and software, cloud engineering, and machine learning expertise. The Nebius AI Studio inference service, which was recently launched, offers app builders access to a range of state-of-the-art open-source models.
The company, which has a team of around 400 engineers and an in-house large language model research and development team, has invested over $1 billion in AI infrastructure. This investment is aimed at deploying tens of thousands of NVIDIA GPUs to deliver an energy-efficient, AI-native cloud offering to customers worldwide.
This press release statement contains forward-looking statements that involve risks and uncertainties, and actual results may differ materially from those predicted. The information in this release is as of November 19, 2024, and Nebius undertakes no duty to update this information unless required by law.
InvestingPro Insights
As Nebius Group N.V. (NASDAQ:NBIS) expands its AI infrastructure in the United States, investors may find additional context from InvestingPro data and tips valuable. The company's market capitalization stands at $3.74 billion, reflecting its significant presence in the AI sector.
One InvestingPro Tip highlights that Nebius holds more cash than debt on its balance sheet, which could provide the financial flexibility needed to support its ambitious expansion plans, including the new GPU cluster in Kansas City and potential future sites. This strong liquidity position is further underscored by another InvestingPro Tip indicating that Nebius's liquid assets exceed its short-term obligations.
The company's financial health is also reflected in its profitability over the last twelve months, with a P/E ratio of 19.85. This suggests that investors are willing to pay a premium for Nebius's earnings, possibly due to its growth potential in the AI infrastructure market.
Interestingly, while Nebius is investing heavily in its infrastructure, it's trading at a low revenue valuation multiple according to InvestingPro Tips. This could indicate that the market has not fully priced in the potential of its expanding US operations and AI-native cloud offerings.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide deeper insights into Nebius's financial position and growth prospects. Currently, there are 7 additional tips available on the InvestingPro platform for NBIS.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.