Palo Alto Networks CEO Nikesh Arora stated that new-generation cloud service providers (neoclouds) will lose pricing power once GPU supply catches up with demand, but he listed Nebius Group (NBIS) as an "enduring neoscaler." Nebius has secured over $40 billion in contracted revenue with Microsoft and Meta Platforms, achieving $3 billion in annualized recurring revenue (ARR) and a 50% adjusted EBITDA margin. The company recently completed a $5.75 billion convertible bond financing to fund data center expansion, GPU procurement, and the development of its AI cloud platform.