Key Takeaways
- Jensen Huang, Nvidia’s CEO, publicly praised CoreWeave and Nebius during the Goldman Sachs conference, stating both firms are “doing fantastically”
- CoreWeave recorded second-quarter revenue of $2.58 billion, representing a 112% increase from the previous year, alongside a $104 billion backlog
- Nebius achieved 454% year-over-year Q2 revenue growth, reaching $582 million with a 50% EBITDA margin in its AI-cloud segment
- Both companies secured $2 billion commitments from Nvidia, with plans to deploy more than 5 gigawatts of AI infrastructure before 2030
- Financial challenges persist: CoreWeave holds $33.8 billion in debt with a $626 million Q2 net loss, though Nebius reduced its adjusted net loss by 64%
During last week’s Goldman Sachs Communacopia + Technology Conference, Nvidia CEO Jensen Huang offered rare public praise for two emerging AI cloud infrastructure providers. Huang specifically highlighted CoreWeave and Nebius Group as companies successfully addressing a critical challenge: securing land, power, and data center facilities for AI deployment.
According to Huang, the primary constraint in artificial intelligence expansion has shifted away from semiconductor availability. The real challenge now centers on tangible infrastructureāelectrical grids, real estate, and operational facilities.
“They secure land, power, and shell for us that the CSPs have already exhausted,” Huang explained, describing these two neocloud providers.
Despite anticipating approximately 70% revenue growth year-over-year in the coming year, Nvidia faces demand exceeding 100% when unconstrained. Neocloud partnerships help bridge this infrastructure deficit.
CoreWeave: Massive Scale With Financial Headwinds
CoreWeave disclosed second-quarter revenue reaching $2.58 billion, a substantial jump from $1.21 billion during the same period last year. The company’s revenue backlog expanded to $104 billion, marking a 246% annual increase.
CoreWeave, Inc. Class A Common Stock, CRWV
In January, Nvidia deployed $2 billion into CoreWeave, purchasing equity at $87.20 per share. The partnership extends beyond investment, with collaborative efforts targeting over 5 gigawatts of AI infrastructure deployment by decade’s end.
However, financial challenges remain evident. CoreWeave posted a $626 million net loss during Q2 and maintained approximately $33.8 billion in outstanding debt as of June 30. Additionally, the company increased its 2026 capital expenditure projection to a range between $35 billion and $39 billion.
Year-to-date in 2026, CoreWeave shares have appreciated roughly 18%, significantly underperforming Nebius during the same timeframe.
Nebius: Accelerated Expansion With Stronger Profitability Metrics
Nebius demonstrated exceptional Q2 performance with revenue climbing 454% year-over-year to $582 million. The company’s AI-cloud adjusted EBITDA margin hit 50%, while contracted power capacity projections exceeded 4 gigawatts.
Nvidia’s commitment to Nebius came in March through a pre-funded warrant structure covering 21.1 million shares, valued at $2 billion.
Major technology firms have established substantial contracted relationships with Nebius. SEC documentation reveals a potential five-year infrastructure agreement with Meta Platforms valued at $27 billion, plus Microsoft GPU-cloud commitments potentially reaching $17.4 billion through 2031.
Financial performance shows improvement, with Nebius cutting its adjusted net loss by 64% to $33.2 million in the second quarter. The company’s stock has skyrocketed 146% during 2026.
Industry research from Synergy Research Group indicates the neocloud infrastructure sector produced $25 billion in revenue during 2025, with projections reaching $400 billion by 2031ārepresenting a 58% compound annual growth rate.
Bank of America research estimates the collective backlog from Microsoft, Oracle, Amazon, and Google totaled $2.3 trillion at the conclusion of Q2.
Both companies occupy strategic positions within a rapidly expanding market segment. CoreWeave provides greater backlog transparency and scale. Nebius demonstrates superior growth velocity and improved profitability metrics. Market analysts anticipate robust expansion from both organizations throughout the upcoming years.
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