Nebius Group's stock experienced a nearly 3% increase in premarket trading after the announcement of a significant computing deal with Reflection AI, valued at over $1 billion. This surge brought the stock price to around $216, partially offsetting a previous decline of 4.16% to $210.51.
Details of the Agreement
The strategic partnership will allow Reflection AI to utilize Nebius’s computing infrastructure, which includes the cutting-edge Nvidia GB300 AI chips. The contract is secured through 2029, providing Reflection AI, founded by ex-Google DeepMind researchers and supported by Nvidia, with vital resources to enhance its AI model development.
This isn't Reflection AI's only ambitious deal. Earlier this year, the company entered into a multibillion-dollar agreement with SpaceX, also revolving around the same Nvidia chip model and reportedly costing around $150 million monthly until 2029.
The Bigger Picture for AI Startups
The ongoing demand for AI services coupled with a tightening chip supply has prompted emerging AI companies to make substantial financial commitments in securing computing resources. As noted by Reflection’s CTO Ioannis Antonoglou, “The need for open models is clear, and this additional compute capacity will allow Reflection to continue to build and train frontier AI models at scale.”
Nebius, based in Amsterdam and formerly part of the Russian internet provider Yandex, adds Reflection AI to a growing list of notable clients, which already includes tech giants like Microsoft and Meta. This deal shows Nebius's position in the rapidly expanding AI infrastructure sector.
Analysts have a positive outlook for Nebius, reflected in a Moderate Buy consensus rating based on nine reviews. The average price target stands at $252.86, suggesting a potential upside of about 20% from current levels.
This material is informational and should not be considered as financial advice.
