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.