The AI trade is broadening out. Although AI giants such as Nvidia, Meta and Alphabet will still dominate index-level returns, there are a plethora of small firms gaining serious traction in the space.

Nvidia will continue to produce astronomical growth in dollar terms, but the pace of its growth is slowing. Revenue only grew 6% in the quarter to 27 July compared to the previous quarter.

Supporting a broader AI rally, investors are enjoying a rich selection of companies that are now generating revenue growth similar to Nvidia’s in the year following the launch of ChatGPT.

We look at two AI firms that are gaining the attention of investors.

Nebius

Nebius is a technology company building full-stack AI infrastructure, including large-scale GPU clusters, cloud platforms, and tools and services for AI developers.

The company has positioned itself as a specialist provider of AI-centric cloud services, distinguishing itself from traditional cloud providers by focusing exclusively on the demanding requirements of artificial intelligence workloads. It also operates an AI studio.

Their platform integrates the latest NVIDIA GPUs including L40s, H100, H200, and B200 models with high-performance InfiniBand networks capable of delivering up to 3.2Tbit/s per host.

Indeed, Nvidia itself holds a stake in Nebius.

What sets Nebius apart is its vertically integrated approach to AI infrastructure. The company designs proprietary cloud software architecture and hardware in-house, including servers, racks, and data centres.

This vertical integration allows them to optimise every layer of the stack for AI workloads, potentially delivering superior performance compared to competitors who rely on off-the-shelf components.

Nebius is seeing surging demand for AI infrastructure. In Q4 2024, the company reported revenue of $37.9 million, representing a whopping 466% increase year-over-year, with its core AI infrastructure business growing an even more impressive 602% compared to the same period in 2023.

This momentum has continued into 2025, with Q2 2025 revenue reaching $105.1 million, up 625% year-on-year and 106% quarter-on-quarter.

Management has recently raised its 2025 ARR outlook to $900 million to $1.1 billion.

The ultimate validation of Nebius’s technology and business model came with their announcement of a massive Microsoft partnership. The multi-year agreement with Microsoft is worth up to $19.4 billion through 2031.

Nebius also operates autonomous vehicle service Avride and coding bootcamp Triple Ten, as well as other smaller stakes in exciting early-stage tech firms.

Nebius only has a market cap of $21bn. The stock is up nearly 200% year to date, but growth rates more than justify the rally.

Databricks

We’re being a little presumptive by including Databricks in this article because its stock is not yet public. That said, the San Francisco-based company is finding plenty of support in private rounds.

Databricks recently closed $1 billion in Series K funding, valuing the company at over $100 billion in a round co-led by Andreessen Horowitz, Insight Partners, MGX, Thrive Capital, and WCM Investment Management.

The CEO has hinted at an IPO, but with VC throwing money at them, you can understand why the AI enterprise data firm has yet to IPO.

“We’re seeing tremendous investor interest because of the momentum behind our AI products, which power the world’s largest businesses and AI services,” said Ali Ghodsi, co-founder and CEO of Databricks.

“Every company can securely turn its enterprise data into AI apps and agents to grow revenue faster, operate more efficiently, and make smarter decisions with less risk. Databricks is benefiting from an unprecedented global demand for AI apps and agents, turning companies’ data into goldmines. We’re thrilled this round is already over-subscribed and to partner with strategic, long-term investors who share our vision for the future of AI.”

Databricks itself has become a goldmine. The firm hit a $4 billion revenue run-rate during Q2, representing growth of over 50% year-on-year, whilst its AI products alone have recently surpassed a $1 billion revenue run-rate.

And there’s more to come. The company plans to expand Agent Bricks—a product that builds production AI agents optimised on enterprise data—and launch Lakebase, a new category of operational databases optimised for AI agents.

Databricks has inked partnerships with major technology companies, including Microsoft, Google Cloud, Anthropic, SAP, and Palantir, making it an integral part of the AI ecosystem.

This is an IPO to keep an eye out for.

GenIP has inked a strategic partnership with Chile’s GreenTech Innovation Platform, positioning the AI analytics firm as the official provider of technology transfer services.

The agreement builds on GenIP’s expansion into South America after recently securing its first contracts in Brazil.

The firm, which specialises in generative artificial intelligence services for research organisations and corporations, will now have direct access to more than 400 potential clients through the platform. This network includes universities, businesses, entrepreneurs and public sector bodies focused on sustainable innovation across commerce, services and tourism.

GenIP’s appointment comes as part of the platform’s broader partnership with Universidad Autónoma de Chile. GenIP will offer its AI-powered evaluation, commercialisation and talent-matching solutions to the growing regional innovation ecosystem.

The GreenTech platform provides continuing education tools, events, recruitment services and funding opportunities. Its flagship InnovaSprint programme offers $2 million in funding for successful innovation projects.

The partnership gives GenIP access to what it describes as “a high-quality pipeline” of clients seeking to commercialise their innovations using generative AI technology.

“Being named the official technology transfer partner to such a well-connected innovation platform positions GenIP at the heart of a vibrant and expanding market in Latin America,” said Melissa Cruz, CEO of GenIP.

“This partnership provides direct access to over 400 potential clients and collaborators, supporting our strategy to drive growth through high-value global networks.”

Sainsbury’s has announced that Argos disposal talks with JD.com are over, with the parties failing to reach mutually agreeable terms.

A flurry of reports over the weekend suggested that Argos was readying a deal to offload its Argos business to JD.com. However, Sainsbury’s has ended talks with Chinese e-commerce giant JD.com over a potential sale of Argos after the buyer demanded “materially revised” terms that were deemed not in shareholders’ best interests.

The supermarket chain confirmed it had terminated discussions following media speculation about the deal on 13 September. JD.com’s revised proposals included new terms and commitments that Sainsbury’s said would not benefit shareholders, staff or other stakeholders.

Argos remains Britain’s second-largest general merchandise retailer. It operates the UK’s third most popular retail website and more than 1,100 collection points nationwide.

However, the business has not achieved the potential that investors may have expected under Sainsbury’s ownership, and a sale would allow the group to focus on its grocery business.

Despite the obvious benefits of disposing of Argos, Sainsbury’s said it remains committed to Argos’s future through its “More Argos, more often” transformation strategy, which aims to expand product ranges and enhance digital capabilities. The retailer reported that Argos had traded in line with expectations over the summer, aided by favourable weather conditions.

First-half sales and profitability showed improvement compared to the same period last year, when second-quarter sales were inflated by clearance activities.

The supermarket giant maintains its financial guidance for 2025/26, expecting retail underlying operating profit of around £1bn and retail free cash flow exceeding £500m.

All eyes were on the Federal Reserve and next week’s US interest rate decision as the FTSE 100 flirted with record highs on Friday.

London’s leading index was trading 0.3% higher at 9,328 at the time of writing. The FTSE 100 all-time record closing high sits at 9,321.

Cyclical sectors were among the biggest gainers as investors picked up miners and financials.

“The FTSE 100 pushed higher as investors loaded up on mining shares amid a rise in copper prices,” said Russ Mould, investment director at AJ Bell.

“The broad-based rise in miners also suggests certain investors are in a risk-on mood ahead of the US interest rate decision next week. The Fed is widely expected to cut rates by a quarter percentage point. Such a move could please the market as it makes it cheaper for companies and consumers to borrow money that can then be spent and help accelerate economic growth.”

Glencore added 3% while Antofagasta rose 2%. Anglo American gained 1.4% and was the FTSE 100’s best-performing stock on the week after announcing a merger with Teck Resources.

Beazley was the top riser on Friday, gaining 3.4%.

Poor UK GDP data appeared to weigh on the housebuilding sector, which didn’t join in the cyclically-oriented rally. Taylor Wimpey and Barratt Redrow were largely flat at the time of writing.

“The economy expanded 0.2% in the three months to June, while forecasts had expected growth of 0.3% in line with the previous period,” explained Derren Nathan, head of equity research, Hargreaves Lansdown.

“On a rolling basis, quarterly growth has slowed in each of the last three months, with monthly growth stalling completely in July. This provides further challenge to Chancellor Rachel Reeves to plug the UK’s funding gap without stalling the economy in the forthcoming Budget.”

The doom and gloom around UK GDP was felt in retailers and FTSE 100 REITs. JD Sports was the FTSE 100’s top faller with a loss of 1.4%.

Red Rock Resources has sold its gold royalty interest in Colombia’s El Limon mine back to the mine’s owner, Soma Gold Corp, for £1 million cash plus share subscription rights worth up to C$400,000.

The London-listed natural resources company announced yesterday that it had divested the royalty it has held since 2015. As part of the deal, Red Rock will receive 200,000 subscription rights exercisable over 36 months to purchase Soma shares at C$2 each.

The royalty comprised a 3% net smelter return up to a maximum of $2 million, followed by a 0.5% NSR on a further $1 million of production.

Whilst the royalty has not generated payments for several years, production was expected to resume later this year.

The sale will be seen as a win by investors as they await news on Democratic Republic of Congo legal claims and its Ivory Coast gold portfolio.

“The sale of the royalty back to the mine owner gives Red Rock cash to extinguish liabilities and support working capital, consistent with the priorities set out in our announcement of 21^st July 2025,” said Red Rock Chairman Andrew Bell.

“We believe that the price of c USD1,350,000 plus warrants is a fair one, giving the mine owner a discount to the £1,500,000 at which the asset is carried in our books but accelerating the payment to us and removing our exposure to performance risk of the gold assets concerned.”

Red Rock Resources shares were 15% higher at the time of writing.