Julio_Cesar

Just sit back and laugh

PPI 4.0% YoY, Est. 4.6% PPI 0.5% MoM, Est. 1.1% PPI Core 3.8% YoY, Est. 4.1% PPI Core 0.1% MoM, Est. 0.4%

As a $NBIS shareholder, I really love this. Higgsfield AI is one of the best AI video tools out there, and in this short interview, its Founder explains why they chose $NBIS over other GPU cloud providers. 👀 Key takeaways: - Nebius is very friendly to start-ups. If you talk to developers off the record, you'll often hear that larger cloud providers have unclear terms, while Nebius offers full transparency and fair terms with its on-demand GPU offering. As I explained in my previous article, this is particularly attractive for start-ups and smaller developers because they can't predict exactly how their workloads will change. "Nebius has much better flexibility than any other cloud." - Larger cloud providers typically aren't interested in start-ups — they prefer higher-volume customers. "Nebius provides infrastructure and reliability at the same level as Google or Amazon." Again, just like I said in my last article, hyperscalers are not a threat because they often serve different needs. - Nebius uses a pay-per-token model, and the AI Studio is highly versatile in terms of model offerings, supporting everything from ChatGPT to DeepSeek and other LLMs. - It's very easy to work with Nebius. The team is highly responsive, unlike larger cloud providers. - "Nebius' flexibility, combined with its strong support, will likely attract many media companies." - Other cloud providers have lengthy agreements — sometimes up to 200 pages — while Nebius keeps it simple with 3-5 page contracts. Transparency matters. - Most cloud providers require commitments for a fixed number of GPUs per year, which most start-ups can't handle. Nebius, however, offers resource-based commitments, where a minimum spend unlocks discounts instead of requiring a set GPU quota. - Nebius provides a level of customization and flexibility that no other cloud provider offers. Long $NBIS.

The neocloud category may be the most misunderstood corner of the AI trade because the market still treats these names as one uniform GPU-hours bet when they are actually very different business models: 1. $NBIS (Cloud Utility for the Agentic AI Age) $NVDA just chose Nebius as an architecture partner for the agentic AI era by co-designing AI factories with them, and the Rubin GPU access that comes with this partnership means Nebius gets the next-generation inference stack before almost anyone else in the market. At a $28B market cap, a 5GW power target and Nvidia’s engineering team embedded in the stack.. this is my favorite name in the neocloud category. 2. $IREN (Energy-to-Compute Engine of the AI Era) The dilution fear is real but the market is misreading it. IREN is not diluting to survive but diluting to scale into a $3.7B ARR target and the $9.3B in funding already secured through customer prepayments and GPU financing means the $6B ATM is optionality capital. The real bottleneck in AI infrastructure right now is power and IREN controls ~4.5GW of secured capacity while needing only ~500MW to support its ARR target by year-end. That 10x ratio of power capacity to near-term need is something no competitor can replicate quickly. 3. $CIFR (Landlord of the AI Utility Era) Cipher is not a pure neocloud but is a hyperscale infrastructure landlord signing decade-long leases to $AMZN AWS and $GOOGL while they fill the shells with compute. The AWS lease alone is expected to generate ~$700M in average annualized NOI for the next decade at nearly 100% NOI margins. Power-rich land is the scarcest resource in AI infrastructure and Cipher controls it with 600MW fully contracted, both facilities fully funded through non-recourse fixed-rate project debt and a 3.4GW development pipeline. 4. $CRWV (The Fragile Giant) CoreWeave’s demand backlog and revenue growth are very real but none of that matters if the capital markets close for even one quarter. Interest expense hit $388M in Q4 and management guided Q1 2026 interest expense to ~$550M which implies an annualized run rate above $2B before a single new data center comes online. The bull case requires capital markets to stay open, rates to cooperate, hyperscalers to honor take-or-pay contracts in full and construction to stay on time. That is a lot of dependencies in a macro environment where oil is approaching $100 and private credit is already showing signs of stress.