AI Infrastructure Surge: CoreWeave, Nebius, and Applied Digital Report Triple-Digit Growth

The build-out of artificial intelligence infrastructure is fueling rapid expansion for a new class of specialized computing providers. Companies like CoreWeave and Nebius, categorized as 'neocloud' providers, are focusing exclusively on AI computing power, distinguishing themselves from general-purpose cloud giants by offering tailored GPU resources and full-stack solutions for AI developers. Nebius has demonstrated explosive momentum, reporting a 547% year-over-year revenue increase in the fourth quarter to $228 million. The company is aggressively scaling, with expectations that its annual run rate will climb from $1.25 billion at the end of 2025 to between $7 billion and $9 billion by the end of 2026. CoreWeave is similarly expanding, with Q4 revenue increasing 110% year-over-year to $1.6 billion. The firm is currently working through a substantial backlog and expects to recognize at least $28 billion in revenue over the next 24 months. Both neocloud providers have secured significant contracts from major hyperscalers, including Meta Platforms. Supporting this compute layer is Applied Digital, which operates as the physical infrastructure provider. For its third fiscal quarter ending February 28, Applied Digital saw revenue jump 139% year-over-year to $127 million. As a landlord and builder for data centers—including those housing CoreWeave—the company is benefiting from a severe shortage of AI-ready space. Wall Street analysts project growth of 94% for the remainder of the current year and 49% for the following year as new facilities come online.