re: Nebius - NBIS - AI Infrastructure Company

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The Microsoft CEO did not explicitly say that his company will stop building AI data centers, especially as the company has just signed a contract to restart the Three Mile Island nuclear plant for its data centers [lol] . However, it seems that he’s already put a cap on their capital expenditure, especially as competitors are also putting up their own infrastructure. Instead, Microsoft might lease capacity from them.'

For the next couple of years it's business as usual for demand outstrips supply 2:1 - excellent news for us. Afterwards will we see.

To mitigate the risks associated with an oversupplied market, Nebius is already diversifying its service offerings beyond raw AI compute power (reminder: that's pretty much what CoreWeave is offering). This includes specialized AI solutions, software platforms and various value-added services that differentiate Nebius from competitors. In other words it's nothing new to them.

Of course, what Nadella isn't mentioning is that his approach assumes demand for AI will stagnate or at least won't skyrocket during the next few years. That might very well be happening (although DeepSeek and other solutions are making training more affordable thus more companies can jump on the AI train), as mentioned NBIS investors are good even then. Yet there's a very real possibility of demand exploding into the stratosphere. Then we'll be even better off.

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