Nebius Unveils Token Factory: Revolutionizing AI Development with Open-Source Models and Multibillion-Dollar Microsoft Deal

November 6, 2025
Nebius Unveils Token Factory: Revolutionizing AI Development with Open-Source Models and Multibillion-Dollar Microsoft Deal
  • The platform is available now, upgrading existing Nebius AI Studio users and supporting over 60 open-source models across text, code, and vision.

  • The Microsoft agreement underscores strong hyperscaler interest in partnering with emerging neocloud providers.

  • Early adopters include Prosus, Higgsfield AI, and Hugging Face, with reported benefits like up to 26x cost reductions and scalable, production-ready inference.

  • Co-founder notes the product is designed to optimize inference pipelines, deliver production-ready systems, and enable scaling with minimal overhead.

  • Nebius has been rapidly expanding in the US, Europe, and Israel, including opening one of Israel’s first public clusters using Nvidia’s latest chips.

  • The launch follows Nebius’s international expansion and its Yandex spin-off, reinforcing its growing global presence and Nvidia-backed capabilities.

  • Nebius has a multibillion-dollar deal with Microsoft worth up to $19.4 billion to provide computing capacity, signaling strong validation from major tech players.

  • Nebius Group launches Token Factory, a platform that gives developers access to open-source AI models and runs inference workloads on Nebius’s high-performance compute clusters.

  • Token Factory supports models such as OpenAI GPT-oss, Meta Llama, and China's DeepSeek, enabling users to mix models for their needs while leveraging Nebius’s compute power for deployment.

  • Analyst sentiment remains bullish on NBIS, with a Strong Buy consensus and an average target around $149.50, suggesting about 35% upside.

  • The move aims to expand Nebius’s enterprise reach and provide flexibility beyond closed AI ecosystems, potentially reducing customization costs for clients.

  • Token Factory is built on Nebius AI Cloud 3.0 “Aether,” emphasizing enterprise-grade security, monitoring, and performance validated by benchmarks such as MLPerf Inference.

Summary based on 6 sources


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