The Cloud’s Latest Fancy

by

Amazon, that most industrious of retailers, began by merely purveying books—a quaint notion now, like collecting pressed flowers. It has since blossomed into an empire, delivering nearly everything to one’s doorstep with the efficiency of a well-trained butler. And, of course, there’s Amazon Web Services—AWS—a cloud of computing power that has become rather…essential. One suspects most of its patrons haven’t the faintest idea what it actually does, but they pay for it nonetheless. A testament to the power of mystification, wouldn’t you agree?

Naturally, the investment world, ever seeking the next glittering bauble, is now scouring the landscape for a successor to this digital behemoth. A pretender to the throne, as it were. Currently, the fashionable whispers are directed toward Nebius. But to declare Nebius the “next Amazon” is a statement so lacking in imagination, it borders on the offensive. One might as well declare a sparrow the next eagle.

The AI Illusion and the Cost of Convenience

Cloud computing, before the current AI frenzy, was already a profitable, if unglamorous, pursuit. The principle is simplicity itself: build a temple of silicon and electricity, and rent out its power. It allows those who lack the resources—or, frankly, the inclination—to build their own digital cathedrals to participate in the modern miracle. The AI boom, of course, has merely amplified this trend. Startups, eager to chase the latest algorithmic phantom, prefer to lease computing power rather than invest in the infrastructure. A sensible, if unromantic, approach. After all, why own the orchestra when you can simply rent the musicians?

However, not all clouds are created equal. Some, it seems, are optimized for the mundane, while others—like Nebius—aspire to something more…specialized. They offer cutting-edge equipment, a rapid deployment process, and the promise of unlocking the full potential of artificial intelligence. A tantalizing proposition, certainly. Their revenue growth, from $1.25 billion to a projected $7-9 billion in a single year, is…impressive. Though, one must remember that rapid growth is often a symptom of desperation, not necessarily strength.

Loading widget...

But let us not mistake enthusiasm for inevitability.

Amazon’s Response: A Matter of Scale and Stubbornness

Amazon, naturally, is not content to merely observe this competition. They’ve begun designing their own chips—a rather vulgar display of self-reliance, if you ask me—offering performance at a competitive price. Their custom chip business already boasts an annual run rate of $10 billion—a figure that dwarfs Nebius’ current revenue. And, as any seasoned observer of the market knows, scale is the most formidable of advantages. It is far easier to defend an empire than to build one.

Loading widget...

To suggest Nebius will surpass Amazon is, frankly, a rather naive proposition. Amazon is not merely a company; it is a force of nature. It adapts, it expands, and it crushes all who stand in its path. Nebius, for all its potential, remains a mere speck on the horizon.

However, a respectable growth trajectory and healthy operating margins would be a considerable achievement for Nebius. Investing in both Nebius and Amazon—a combination of established solidity and speculative fervor—might prove a shrewd maneuver. Though, one should always remember that even the most brilliant investment is ultimately a gamble. And the market, my dear friends, is the most capricious of mistresses.

Read More

2026-02-23 04:32