Nebius hikes AI cloud prices again as demand for computing power soars

Nebius hikes AI cloud prices again as demand for computing power soars Sept 17 : Cloud provider Nebius said on Thursday it will raise pay-as-you-go prices for leasing selected Nvidia chips from October 1, marking the company's second price hike in three months. Demand for computing capacity to train and run AI models is surging; rival CoreWeave said earlier in the day that it is signing contracts at higher prices. Here are some details: • Rates for selected Nvidia graphics processing units will rise between 17 per cent and 21 per cent. • On-demand rates for some central processing units, made by AMD and Intel, and memory offerings have also been hiked. • Prices of some CPU-only instances will rise by 25 per cent and those of memory offerings by about 41 per cent, the company said. • The Amsterdam-based neocloud firm said that customers reserving large-scale clusters for multiple months can receive commitment discounts. • Nebius' price increases follow a quarter of rapid growth in its AI cloud business, as the company signed four customer contracts averaging more than $1 billion each. • Neocloud firms like Nebius rent out high-powered chips and data center infrastructure needed for AI models.