Why Nebius Stock Jumped Today
Key Points
Palantir and Nebius announced a partnership to work together on sovereign AI.
The move should give Nebius access to a valuable new customer base.
Shares of Nebius Group (NASDAQ: NBIS) were moving higher today, even as the broad market was down, after the neocloud stock announced a new partnership with Palantir (NASDAQ: PLTR).
As of 2:29 p.m. ET, Nebius was up 8.9% on the news.
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Nebius gets a big customer win
This morning, Palantir and Nebius announced a partnership to deliver sovereign AI to Palantir customers as the fast-growing data analytics platform named Nebius as its preferred sovereign AI infrastructure partner.
The news represents a key win for Nebius as it shows it branching beyond its core customer base of hyperscalers and winning over software companies, which can give it an advantage in partnering with their customers.
Palantir is a particularly valuable company as it's seen as a winner in AI and has seen tremendous growth in recent quarters.
As part of the deal, Palantir will bring Nebius compute and inference inside its perimeter. The two companies will work together to accelerate the deployment of new compute capacity for Palantir customers.
What it means for Nebius
Palantir itself doesn't represent a major revenue source for Nebius, as the company is much smaller than hyperscalers, but it can connect Nebius to governments with strong demand for sovereign AI.
The move could also pave the way to more such deals, as it acts as validation for the broader neocloud space.
Nebius is already delivering scorching-hot growth, with revenue up 454% in its most recent quarter to $582.3 million, and the Palantir partnership should extend its runway.
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.