Tldr:
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- Nebius’ revenue in the first quarter of 2026 reached US$399 million, an increase of 684% year-over-year, with AI revenue accounting for 98% of total sales.
- Token Factory delivers up to 26x cost savings compared to frontier APIs, with 99.9% uptime and SOC 2 Type II security.
- Three acquisitions in the first quarter – Tavily, Eigen AI, and Clarifai – complete Nebius’ full agent AI deployment stack.
- Contracted power capacity exceeded 3.5 GW in the first quarter, with new guidance targeting 4 GW by the end of the year.
i won’t registered Revenue of $399 million during the first quarter of 2026, reflecting a 684% increase year over year. The company’s AI revenue reached $390 million, an increase of 841% and representing 98% of total revenue.
Full-year revenue guidance was raised to $3.0-3.4 billion, with ARR guidance set at $7-9 billion. These numbers have drawn renewed attention to Nebios’s position in the open source AI infrastructure market.
Token Factory addresses a gap in open source AI deployment
During the Q1 2026 earnings call, Nebius CEO Roman Chernin explained why deploying open source models remains an ongoing challenge.
According to Chernin, proprietary models such as those found in Anthropic, openeye, Gemini works seamlessly through API calls.
However, deploying open source alternatives like DeepSeek, Llama, or Qwen at production scale often fails to meet reliability and cost expectations.
Token Factory is Nebius’ answer to this problem. The platform combines fine-tuning, optimization, orchestration, and deployment into a single managed system.
It offers sub-second response time, auto-scalable throughput, 99.9% uptime, and SOC 2 Type II security. Early adopters have reported cost reductions of up to 26 times compared to frontier proprietary models of equivalent quality.
As noted by Milk Road AI in Token Factory is specifically designed to bridge this gap in enterprise-level workloads.
Adjusted EBITDA margins in the AI Cloud segment nearly doubled QoQ, to 45%. This combination of triple-digit growth and rising margins is rare for any company at this stage of development.
Three acquisitions expand the Token Factory Stack
During the first quarter, Nebius completed three strategic acquisitions targeting different layers of its platform. Tavily adds web search and retrieval capabilities to the stack.
Eigen AI, acquired for $643 million, provides advanced model optimization. Clarifai contributes to production-level inference for multimedia and computer vision workloads.
Together, these additions transform Token Factory from an inference platform into a full-fledged platform Amnesty International agent Deployment stack.
The pipeline now extends from prototype weights to final production AI products, all within Nebius’ proprietary infrastructure. This vertical integration sets the company apart from GPU rental providers that compete on access to hardware alone.
On the infrastructure side, contracted power capacity now exceeds 3.5 gigawatts. Nebius met its full-year power target in the first quarter alone, and then raised guidance to 4 GW by the end of the year.
The new 1.2 GW Pennsylvania AI plant brings the total of 100+ MW owned sites to seven sites on two continents.
This scope of energy infrastructure, secured by wider market demand, It forms the foundation of the Token Factory strategy and positions Nebius within the open source AI economy for years to come.
