Nebius Is Raising the Price of Its AI Compute on Oct. 1. Here's What That Says About the Shortage.
Why would a cloud company in the middle of a huge build-out charge more for the chips anybody can rent by the hour?
Overview
Nebius Group (NASDAQ:NBIS) is about to charge more for the computing power it rents out by the hour. On Thursday, Oct. 1, the artificial intelligence (AI) cloud company's on-demand rate for an Nvidia B300 graphics processing unit (GPU) climbs 21%, from $7.85 per hour to $9.50.
Nebius expects to spend $20 billion to $25 billion on capital expenditures this year, versus guided revenue of $3 billion to $3.4 billion. A company building capacity so fast normally needs to work to fill it, not raise prices on it.
Details
But what does a price hike now say about how tight AI computing supply is? I think it says plenty. Still, the increase itself touches a smaller share of Nebius' business than the new rates imply.
Source
Originally published at www.fool.com.