Key Highlights
- Shares of Nebius Group climbed nearly 3% in early trading following the announcement of a computing partnership exceeding $1 billion with Reflection AI
- The agreement provides Reflection AI with infrastructure access and Nvidia’s newest GB300 AI processors until 2029
- Two ex-Google DeepMind researchers founded Reflection AI, which counts Nvidia among its investors
- Reflection AI previously inked a multibillion-dollar computing arrangement with SpaceX in June
- Wall Street analysts give Nebius a Moderate Buy rating with a $252.86 average target price, suggesting approximately 20% potential upside
Shares of Nebius Group (NBIS) surged nearly 3% during premarket hours Tuesday after the company revealed a computing partnership valued at over $1 billion with artificial intelligence startup Reflection AI. The announcement lifted NBIS beyond $216 ahead of the opening bell, recouping a portion of Monday’s 4.16% decline that closed at $210.51.
The partnership grants Reflection AI access to Nebius’s computational infrastructure, which includes Nvidia’s latest-generation GB300 AI processors. The arrangement extends through the end of 2029.
Reflection AI’s founding team includes two researchers who previously worked at Google DeepMind. Nvidia has invested in the company, which specializes in developing sophisticated open-source artificial intelligence models.
This marks Reflection’s second significant computing commitment. Earlier in June, the AI startup established a multibillion-dollar arrangement with SpaceX for the same Nvidia chip architecture, with monthly costs reportedly reaching approximately $150 million through 2029.
According to reports from The Wall Street Journal, Reflection AI has been in discussions to secure $2.5 billion in funding at a $25 billion company valuation.
Growing Computing Expenditures Among AI Companies
Startup companies in the AI sector are committing substantial capital to secure computing infrastructure, which has emerged as a critical constraint for the industry. As demand for AI capabilities continues its upward trajectory while chip availability remains limited, semiconductor costs have increased significantly.
Ioannis Antonoglou, CTO and co-founder of Reflection, stated: “The need for open models is clear, and this additional compute capacity will allow Reflection to continue to build and train frontier AI models at scale.”
For Nebius, this partnership brings another prominent name to its expanding client portfolio. The Amsterdam-headquartered firm, which separated from Russian internet company Yandex in 2024, maintains existing computing contracts with Microsoft and Meta.
Analyst Outlook on NBIS Stock
According to TipRanks data, Nebius Group carries a Moderate Buy consensus among Wall Street analysts, based on nine professional assessments. The breakdown includes five Buy ratings, four Hold ratings, and zero Sell recommendations.
The consensus price target stands at $252.86, indicating potential upside of 20.12% from current trading levels.
Nebius operates by leasing AI computational resources and has established itself as critical infrastructure for companies developing AI models.
This partnership with Reflection serves as further evidence that demand for AI computing infrastructure continues to accelerate.
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