Overview
- Reports say Nebius entered renewed talks to buy AI21 Labs after Nvidia’s negotiations fell through, and the stock moved higher.
- Cantor initiated coverage of Nebius with an Overweight rating and a $129 price target, helping extend a multi-day rally in the shares.
- Nebius is racing to expand its data center footprint to about 3 gigawatts of contracted capacity this year to deliver large AI compute deals such as a reported $27 billion agreement with Meta.
- Nvidia holds stakes in both Nebius and AI21, and analysts note the overlapping investments could complicate negotiations on price and timing.
- AI21, which has shifted from a consumer app to enterprise AI tools with an estimated $50 million in annual revenue, would add application-layer software to Nebius’s infrastructure-led business.