AI Research
Prediction: This Artificial Intelligence (AI) Stock Will Be the Next Household Name by 2031

For now, the “Magnificent Seven” and select others remain the most popular names in the AI arena.
Over the last few years, companies like Nvidia, Amazon, Alphabet, Microsoft, and Meta Platforms dominated the narrative around artificial intelligence (AI). As the conversation shifted beyond chips and into adjacent applications in data centers and software, names such as Broadcom, Taiwan Semiconductor Manufacturing, and Palantir Technologies also stepped into the spotlight.
It’s no secret that the AI trade remains heavily concentrated within a small circle of big tech giants. But savvy investors know that opportunity doesn’t end with the usual suspects.
So here’s the question: Have you heard of Nebius Group (NBIS 50.52%)? If not, you’re not alone.
This sprawling data center company has flown under the radar — but its unique position in the AI ecosystem could propel it into the spotlight and make it a household name very soon.
Nebius took an unconventional route to the AI revolution
Unlike many of its louder peers, Nebius did not emerge as a flashy start-up or an established tech titan already entrenched in the AI race. Instead, the company traces its roots back to Yandex — a Russian internet conglomerate.
As geopolitical tensions from the Russia-Ukraine war escalated, Yandex moved to divest its noncore assets. From that process, Nebius was spun off, and it was listed on the Nasdaq exchange last October.
Soon after, Nebius completed a capital raise that attracted a particularly notable participant: Nvidia. The undisputed leader in AI chips not only became an investor but also established itself as a strategic ally — lending Nebius a level of credibility that few companies can claim.
At its core, Nebius can be considered a neocloud — a business specializing in building AI infrastructure by constructing data centers and renting out Nvidia’s sought-after graphics processing units (GPUs) to other businesses via the cloud. This model positions Nebius to scale up in lockstep with Nvidia, benefiting as next-generation chips like Blackwell and Rubin enter the market.
Image source: Getty Images.
Nebius is more than GPUs
While infrastructure is its core business, Nebius operates several subsidiaries and also has notable strategic investments.
Toloka is in the business of data labeling, an important component of training datasets for AI models. The company also has exposure to autonomous driving systems and robotics through Avride and maintains a software platform called TripleTen that specializes in educating developers across various AI applications.
Nebius also has an equity stake in ClickHouse, an open-source database management and analytics system.
This diversified ecosystem positions Nebius beyond chips and provides the company with exposure to a number of potentially trillion-dollar ancillary markets as AI workloads become larger and more advanced.
Is Nebius stock a buy right now?
In December 2024, Nebius’s core infrastructure segment closed the year with an annualized run rate of $90 million. Just two quarters later (by June 30), the company’s annual recurring revenue (ARR) run rate surged to $430 million. Even more compelling is that management recently raised full-year guidance to a range of $900 million to $1.1 billion from its prior outlook of $750 million to $1 billion.
On Sept. 8, however, everything changed for Nebius as news broke that the company signed a massive new deal with Microsoft. According to regulatory filings, Nebius “will provide Microsoft access to dedicated GPU infrastructure capacity” at its data center in New Jersey. The contract is worth $17.4 billion and runs through 2031.
Prior to the deal with Microsoft, Nebius boasted a market capitalization of $15.4 billion — implying a forward price-to-sales ratio of about 14 at the high end of its ARR forecast. For context, that’s about half the multiple CoreWeave commanded at its peak earlier this year following its much-hyped initial public offering.
CRWV PS Ratio data by YCharts
This suggests a couple of takeaways. On one hand, Nebius’s valuation has been swept up in the broader bullish AI narrative — leaving traces of froth. On the other, the stock has remained relatively insulated from the sharp pullbacks seen in more volatile peers like CoreWeave — a dynamic that could play in its favor as it continues to fight for mindshare in an increasingly crowded and competitive market.
Looking ahead, Nebius appears positioned to benefit from secular tailwinds fueling AI infrastructure. Microsoft’s new deal emphasizes that cloud hyperscalers are showing no signs of slowing their capital expenditure, and Nebius is already steadily carving out a role as a beneficiary of that spending.
I think Nebius will be trading materially higher than it is today by next decade as its relationship with Microsoft matures. That makes it, in my view, a compelling buy-and-hold opportunity.
Adam Spatacco has positions in Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, Palantir Technologies, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and Nebius Group and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
AI Research
Switzerland launches open-source AI model Apertus developed by top research institutes

Switzerland has unveiled Apertus, an open-source large language model created through collaboration between the Swiss Federal Institute of Technology in Lausanne (EPFL), the Swiss Federal Institute of Technology in Zurich (ETH Zurich), and the Swiss…
AI Research
McMahon, Morath visit Austin school using artificial intelligence

AUSTIN (Nexstar) — U.S. Secretary of Education Linda McMahon toured an Austin private school on Tuesday, which claims it helps students “Learn 2x in 2 Hours.”
Alpha School Austin
Alpha School Austin is part of an upstart network of Alpha Schools across the country, focused on using Artificial Intelligence (AI) to help students progress through their coursework faster.
“Fundamentally, we believe that kids are limitless,” co-founder MacKenzie Price said. “When kids receive personalized learning that goes at their pace and level, their learning is able to go exponentially faster than in a traditional classroom.”
Instead of ‘teachers,’ students at Alpha School Austin are supervised by ‘guides,’ who help lead them through their abbreviated coursework. During the course of McMahon’s tour, students were completing rapid-fire math problems, designing a mini gold course and cooking.
“[Teaching two hours a day] begs the question, ‘what do you do with the rest of the school day?’” Price said. “We want our students to learn life skills, the skills that are going to help them be successful when they’re out in the real world.”
Despite having one-third of the classroom instruction, Alpha said their students are showing high levels of student achievement.
“We provide NWEA MAP (Northwest Evaluation Association Measures of Academic Progress) testing assessments three times a year in order to measure our students’ progress,” Price said. “Our classes are ranged in the top 1% in all subjects, all grade levels, with the exception of fifth grade math—which was 93rd percentile.”
The AI part of learning only accounts for about 10% of a student’s success, Price admits. It also isn’t for everyone, with Price saying it works for about 80-90% of students.
“Sometimes we see families who prefer a classical education model, or we see students who maybe want a more traditional experience,” Price said. “But it’s very rare.”
Head of U.S. Education and Head of Texas Education visit
After the tour, McMahon and Texas Education Agency Commissioner Mike Morath attended a roundtable featuring Price and several other Alpha school stakeholders. They heard from current parents, students, ‘guides’ and an alumna.
“I was very impressed,” McMahon said after the visit. “It’s just incredibly inspirational to see how quickly they can learn.”
McMahon and Morath are the heads of public education at the federal and state level, respectively. However, they hope to draw inspiration from the $40,000-a-year private school.
“What I’m doing right now is going around the country to see best practices,” McMahon said. “What I would like to do is to develop tool kits to leave behind with schools or with states and say ‘these are some best practices I think that I’ve come in contact with around the country. Not that I would write them—but there would be people knowledgeable to write them so they could be utilized and say ‘this is not a mandate. You don’t have to do this. This is where it’s worked.”
“If you look at the Texas Constitution, it calls for a general diffusion of knowledge,” Morath said. “Our goal is to make sure that children have access to great schools regardless of how who runs it, regardless of the label on the outside of the building. And so there are lessons to be learned in a school like Alpha that we’re visiting today. There are lessons to be learned from traditional public schools. If you look across the spectrum of the 9,000 public schools that run in Texas, you see tremendous diversity of educational models, of curricular design, of the way that teachers are supported and provide support to students we have to learn these lessons. How else do we improve the quality of education for our young people?”
Of course, not everyone can afford a school as expensive as Alpha. Even with the full amount provided for families through Texas’s incoming Education Savings Accounts would only cover 1/4th of the annual tuition cost. However, Alpha School officials argue the model can be implemented in other schools at a low cost.
“I could do this model of education in a tent as long as I had internet,” Price said. “It’s not about the building. It’s about what happens inside the building. That’s the thing that matters. I think it’s time for us all to hold ourselves accountable for delivering better to these kids and I think using artificial intelligence is what enables us to raise human intelligence.”
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
For the latest news, weather, sports, and streaming video, head to KXAN Austin.
AI Research
Oxford and EIT Secure £118 Million for AI-Driven Vaccine Development Research – geneonline.com
-
Business2 weeks ago
The Guardian view on Trump and the Fed: independence is no substitute for accountability | Editorial
-
Tools & Platforms4 weeks ago
Building Trust in Military AI Starts with Opening the Black Box – War on the Rocks
-
Ethics & Policy1 month ago
SDAIA Supports Saudi Arabia’s Leadership in Shaping Global AI Ethics, Policy, and Research – وكالة الأنباء السعودية
-
Events & Conferences4 months ago
Journey to 1000 models: Scaling Instagram’s recommendation system
-
Jobs & Careers2 months ago
Mumbai-based Perplexity Alternative Has 60k+ Users Without Funding
-
Podcasts & Talks2 months ago
Happy 4th of July! 🎆 Made with Veo 3 in Gemini
-
Education2 months ago
Macron says UK and France have duty to tackle illegal migration ‘with humanity, solidarity and firmness’ – UK politics live | Politics
-
Education2 months ago
VEX Robotics launches AI-powered classroom robotics system
-
Funding & Business2 months ago
Kayak and Expedia race to build AI travel agents that turn social posts into itineraries
-
Podcasts & Talks2 months ago
OpenAI 🤝 @teamganassi