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Nebius Says AI Computing Prices Are Rising as Neocloud Model Faces Scrutiny

Nebius says AI computing prices are rising as investors question neocloud business models and debt-funded data centers.

AI News Feed · 2026-10-21 22:53

Marc Boroditsky said Nebius was not in the same position as CoreWeave, one of the largest neocloud players, because "we're not carrying the kind of debt that they are." Investors have grown wary after CoreWeave's cost of borrowing spiked. The developments at CoreWeave and questions about how much debt is being used to fund the data-center buildout have weighed heavily on other neoclouds such as Iren and Nebius, whose shares have fallen sharply over the past month.

Boroditsky said that if Nebius brought its 2027 capacity online, it would sell out. There could be "the same type of dynamic" in 2028, he said, supporting a positive longer-term demand outlook as companies race to secure access to computing power. Asked whether he expects the price per megawatt to keep rising ahead of expectations, he replied: "Yeah."

Nebius ran an auction for computing capacity on Tuesday that showed continued price increases, Boroditsky said. "We're seeing continued upward mobility in terms of the kind of price per megawatt," he told CNBC. Price per megawatt is a key measure for the new cloud companies because it shows how much they can charge customers for a given amount of computing capacity.

Chase Lochmiller, CEO of Crusoe, an Nvidia-backed AI company that is building data centers, was also bullish on pricing. He said Crusoe was seeing rising prices for GPUs, including older Nvidia chips. "We're seeing higher pricing today for A100s than we saw in 2020 or 2021. We're seeing higher pricing for H100s than what we saw when they were first deployed in 2023," Lochmiller said. "There's tremendous demand and a lot of it is because the underlying model capabilities have gotten so much more advanced that people are just creating so much more value out of the compute infrastructure."

The comments came amid an investor debate over how quickly Nvidia's GPUs lose their economic value as more powerful chips reach the market. The ability to keep renting older chips at attractive prices is crucial for AI infrastructure companies that need to recover their investments and generate profits while spending billions of dollars on GPUs. Lochmiller's comments suggest that, at least for Crusoe, older generations of Nvidia chips are commanding higher rental prices than when they were first deployed, potentially strengthening the economics of its AI cloud business.

Nebius stock rose on Wednesday after SpaceX reported revenue at its AI business jumped ninefold to $7.56 billion. SpaceX CFO Bret Johnsen said pricing is "currently tracking slightly above the high end of the $30 to $50 per watt range." CoreWeave, Iren and Applied Digital also rose in premarket trading on Wednesday after Johnsen's comments.

"I'm thrilled by SpaceX's results. It's confirming what we already know, which is that it's a very dynamic market and that supply continues to fall far behind demand," Boroditsky said.