Nebius Pushes Token Factory as Q1 Revenue Jumps 684%, Guidance Rises

Nebius is presenting Token Factory as the next leg of its AI infrastructure business, with co-founder Roman Chernin saying on the company’s first-quarter 2026 earnings call that the next bottleneck is running inference efficiently at scale rather than simply supplying GPUs. He described Token Factory as a production inference platform for fine-tuning, optimization, orchestration and deployment of open-source and custom models, positioning Nebius as more than a GPU rental provider.

The strategy comes as Nebius reported first-quarter revenue of $399 million, up 684% from a year earlier, while AI-specific revenue rose 841% to $390 million and accounted for 98% of total sales. Annual recurring revenue grew 674%, and the company raised full-year ARR guidance to $7 billion to $9 billion and revenue guidance to $3.0 billion to $3.4 billion. Contracted power capacity now exceeds 3.5 gigawatts, with a 4-gigawatt year-end target, and Nebius said Q1 acquisitions of Tavily, Eigen AI and Clarifai add search, model optimization and multimodal inference capabilities to the Token Factory stack.