Nebius will be the first neocloud to hit $1 trillion dollar company and here is exactly why (Save this).
Milk Road AI Twitter · Milk Road AI (@MilkRoadAI) · 2026-06-30
Milk Road AI argues Nebius will become the first neocloud to reach a $1 trillion valuation because Nvidia is strategically investing $40 billion across the neocloud ecosystem to prevent hyperscalers from monopolizing AI compute with custom silicon.
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Topics: neocloudnvidia-strategyai-infrastructurecloud-computinginvestment-thesis
Claims
- Nvidia has deployed roughly $40 billion in AI ecosystem investments across OpenAI, Anthropic, CoreWeave, Nebius, and xAI to engineer a multipolar compute world that keeps GPU demand high.
- Nebius reported $399 million in Q1 2026 revenue, up 684% year-over-year, with $46 billion in contracted backlog.
- Nebius targets $7–9 billion in annualized revenue by year-end 2026 and has 3.5 GW of contracted power across seven sites.
- Nebius rejected Google's approach to deploy TPUs, with its CRO noting that 99% of customer demand is for Nvidia GPUs.
- Every neocloud that survives structurally weakens Google TPU and Amazon Trainium by expanding Nvidia's customer base outside hyperscaler control.
Key quotes
By funding NeoClouds and NeoLabs at scale, Jensen is deliberately engineering a multipolar compute world where no single hyperscaler can dictate terms and where Nvidia hardware remains the default infrastructure layer regardless of which model or platform ultimately wins.
Dylan Patel described the neocloud ecosystem as throwing bait into the water and letting the best fish survive, warning that many heavily-backed teams will fail, but the ones that emerge will pull hundreds of millions in ARR right out of the gate.
Nebius is that fish because it's the only neocloud operating at hyperscaler scale while remaining fully purpose-engineered for AI workloads from silicon to software.