Nebius Group N.V. (ticker: NBIS) reported its Q1 2025 earnings with revenue of $55.3 million, representing a 385% year-over-year increase. The company's core AI infrastructure business drove this growth, with Annualized Run-Rate Revenue (ARR) reaching $249 million, a 684% increase compared to the previous year. Despite the revenue surge, Nebius posted an adjusted EBITDA loss of $62.6 million and a net loss of $113.6 million for the quarter. Gross margin improved significantly, with the cost of revenue decreasing to 53% of sales from 78% year-over-year. The company’s outlook for full-year 2025 projects revenue between $500 million and $700 million, with core AI segment ARR guidance ranging from $750 million to $1 billion. Nebius anticipates achieving positive adjusted EBITDA in the second half of 2025, although it expects to remain negative for the first half. Investor interest in Nebius has increased, with the stock rising over 70% in two weeks, trading above $40, up from under $24. Meanwhile, BigBear.ai Holdings, Inc. (ticker: BBAI), another AI-focused company, is also gaining market attention and showing signs of momentum.