Berlin — Nevius The price of AI computing is rising more than expected, executives told CNBC on Wednesday, offering a bullish view amid increased scrutiny of neo-cloud companies’ business models.
Investors have since become more cautious. core weaveone of the biggest neocloud players, has seen its borrowing costs soar. Questions about CoreWeave’s development and the amount of debt used to finance data center construction have weighed on other neoclouds, including: Airen And Nevius’ stock price plummeted last month.
Marc Boroditsky, Nebius’ chief revenue officer, said the company is not in CoreWeave’s position because “we don’t have the debt that CoreWeave has.”
He also said that once the AI infrastructure company brings its 2027 production capacity online, it will be sold out. He said a “similar move” could occur in 2028 as companies compete to secure access to computing power, underscoring a positive long-term demand outlook.
Asked if he thought prices per megawatt would continue to rise faster than expected, Boroditsky said: “Yes.”
Nebius is one of a new wave of neo-cloud companies investing billions in acquisitions NvidiaBuild a data center using graphics processing units and rent that capacity.
Nevius held an auction of computing power on Tuesday, which showed continued price increases, the revenue chief said. “We continue to see an upward trend in terms of price per megawatt,” he told CNBC.
Price per megawatt, an important measure among new cloud companies, indicates how much a company can charge customers for a given amount of computing capacity.
Chase Lochmiller, CEO of Crusoe, an Nvidia-backed AI company that builds data centers, was also bullish on pricing, saying his company is seeing rising prices for GPUs, including older Nvidia chips.
“The A100 price is higher today than it was in 2020 or 2021. The H100 price is higher today than it was when it was first introduced in 2023,” Lockmiller said.
“There’s a huge demand, and a lot of that is because the underlying models are getting so much more sophisticated and people are getting more value out of their computing infrastructure.”
The comments come as investors debate how quickly Nvidia’s GPUs will lose economic value as more powerful chips come to market.
The ability to continue renting older chips at attractive prices is critical for AI infrastructure companies that spend billions of dollars on GPUs but need to recoup their investments and generate profits.
Rochmiller’s comments suggest that, at least for Crusoe, rental prices for older generation Nvidia chips are now higher than when they were first introduced, potentially strengthening the economics of AI cloud businesses.
SpaceX boost
Nebius stock rose on Wednesday space x Reported revenue for the AI business increased nine times to $7.56 billion. SpaceX Chief Financial Officer Brett Johnsen said pricing is “currently just above the upper end of the $30 to $50 per watt range,” underscoring the pricing power of companies that rent computing capacity.
Cloud provider CoreWeave, Airenand applied digital Shares also rose in premarket trading Wednesday following Johnsen’s comments.
Nebius, Coreweave and Applied Digital stock prices over the past day.
“We are excited about SpaceX’s results, which confirm what we already know: the market is very dynamic and supply is well below demand,” Boroditsky said.
