Neocloud Boom Fuels Growth in AI Infrastructure Providers

The AI buildout is accelerating at an unprecedented rate, rivaling the railroad boom in the 1800s. Big tech companies are investing hundreds of billions of dollars in artificial intelligence infrastructure.

Nebius Group (NBIS) is one of the leading neocloud providers, renting high-performance GPUs to power AI. It has a multi-year partnership with NVIDIA (NVDA) and landed a multi-billion-dollar contract recently.

In comparison, IREN (IREN) pays 1.7% interest on its debt, while Nebius pays 2.3%. However, investors must consider the nuances of each company's financing. Nebius has been able to receive upfront capital in its recent contract wins.