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It looks like businesses will spend trillions of dollars on AI infrastructure over the next decade.
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Nebius Group is growing rapidly, but its losses are still widening.
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Iren Limited is profitable as most of its revenue comes from Bitcoin mining.
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10 stocks we like better than Nebius Group ›
There are some interesting ways to invest in the development of artificial intelligence (AI), but one of my current favorites is AI infrastructure. NVIDIA CEO Jensen Huang estimates that companies will spend $3 trillion to $4 trillion on AI infrastructure and data centers by 2030 — and Huang is far more likely to be right than wrong.
Chipmakers are doing their best to produce more powerful chips, but demand for data center capacity is also growing. Because of the huge expense of buying, bundling and powering chips, developers and companies are more likely to use cloud environments for AI training and inference.
I invested Nibis Group (NASDAQ: NBIS)is an emerging Dutch company that provides cloud infrastructure for artificial intelligence environments. but the more i learn ylon co., ltd. (NASDAQ: IREN)the more I appreciate this business model.
Let’s take a look at these two companies.
The Nebius Group is based in the Netherlands but once had ties to Russia. The company’s original name was Yandex NV, and its main business was the Russian Internet company of the same name. Yandex trades on the Nasdaq stock market, but Nasdaq The company suspended trading when the Russian company came under sanctions over Russia’s invasion of Ukraine. The company sold its Russian assets, changed its name to Nebius, and eventually began trading on Nasdaq again.
Today, Nebius is an artificial intelligence infrastructure company that provides large-scale Nvidia graphics processing unit (GPU) clusters throughout Europe, the Middle East and the United States. The company offers up to 32 Nvidia H100 and H200 GPUs on demand, as well as full-stack AI infrastructure contracts powered by Nvidia Blackwell GPUs.
The company reported rapid revenue growth in the third quarter, reaching $146.1 million, up 355% year over year, and touted $3 billion in new deals meta platform Providing artificial intelligence infrastructure for the next five years. This follows the company’s first major win, with Microsoft The value announced in September was as high as $19.4 billion.
Despite the high cost of revenue growth, Nebius is still not profitable because building and operating data centers is extremely expensive. The company reported a net loss of $100.4 million for the quarter and a net loss of $273.7 million so far for the year.
CEO Arkady Volozh said in a letter to shareholders: “We have always stated that we are committed to actively growing our business and will continue to deliver on this commitment. 2025 is a constructive year as we lay the infrastructure and framework for rapid growth in the future.”
The company plans to have up to 1 gigawatt of contracted power by the end of 2026 and is looking for additional sites that would allow it to have up to 2.5 gigawatts of power.
Iren is an Australian company also in the AI infrastructure business. What makes it unique is that it derives most of its revenue from Bitcoinallowing it to be profitable as it begins building data centers and adding capacity.
It currently has three data centers in Canada, one in Texas, and is building a second data center in Texas. It’s also touting one of its major artificial intelligence deals, signing a $9.7 billion deal to provide Microsoft with cloud computing services using Nvidia GPUs. It also bought $5.8 billion in GPUs and equipment as part of the deal Dell Technologies.
Revenue in the first quarter of fiscal 2026 (ending September 30, 2025) was US$240.3 million, a year-on-year increase of 335%. The company’s net profit was $384.6 million, compared with a loss of $51.7 million a year ago.
Bitcoin mining revenue accounted for the majority of the company’s revenue, at $232.9 million, while artificial intelligence cloud services revenue was only $7.3 million. But the company is laying the groundwork for much more.
“Looking ahead, our announced GPU expansion to 140k represents just 16% of our 3 GW grid-connected power portfolio, providing ample capacity to continue expanding Iren’s AI cloud platform and drive long-term value creation,” said co-CEO Daniel Roberts.
I’ve never been a fan of debt, but I understand the need for companies to make their own products. The problem with AI infrastructure is that it’s expensive, and those costs aren’t going away. GPUs have a limited shelf life, and companies like Nvidia are already working on the next generation of GPUs.
Iren allows investors to buy stock in an artificial intelligence data center company that does not incur debt. This gives Iren a huge advantage over companies like Nebius. core weavingwhich is why I prefer buying it now.
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Patrick Sanders works at Nebius Group and Nvidia. The Motley Fool holds and recommends Bitcoin, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: Long January 2026 Microsoft calls at $395 and short January 2026 Microsoft calls at $405. The Motley Fool has a disclosure policy.
Better AI Infrastructure Stocks: Nebius Group vs. Iren Limited Originally published by The Motley Fool