Investors question AI cloud service providers' business models, but Nebius says AI computing prices are rising.
Marc Boroditsky, Chief Revenue Officer at AI cloud provider Nebius, stated on Wednesday that AI computing prices have risen more than expected, as investors scrutinize the debt, borrowing costs, and economic benefits of AI infrastructure companies. He emphasized that Nebius's debt situation differs from CoreWeave's recent surge in borrowing costs. He anticipates the company's computing capacity for 2027 and 2028 will be sold out, indicating an optimistic demand outlook. Chase Lochmiller, CEO of another AI company, Crusoe, also expressed optimism about pricing, noting that older NVIDIA chips are even more expensive than when they were first deployed. SpaceX reported a ninefold increase in AI business revenue to $7.56 billion on Wednesday, with CFO Bret Johnsen stating pricing is "slightly above the high end of the $30 to $50 per watt range," further confirming the pricing power of computing capacity lessors.
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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