It does feel like NBIS Is offering a suite of seemingly unrelated products — as if they asked AI which services offered the most potential for growth and high margin revenue over the next decade then created a business That touched Everything AI spit out.
It almost feels like each of these could be a successful spinoff on its own— However, I think this is actually a phenomenon we are seeing more and more in business as technology and compute power begin to overlap.
Visionary and innovative leadership want to get involved in anything and everything that is interesting and important to them— Take Tesla for example, they are an EV company right? The reality is they are a technology behemoth but the mix of revenues touching everything from Robo taxis to energy and humanoid robots— I don’t believe it will be long before consumer EV’s or Tesla’s smallest revenue source—
I believe something similar is happening with Nebius. Leadership has the vision, resources, and a chip on their shoulder rebooting a new company after geopolitical disruption.
As far as TripleTen goes— I have a slightly different outlook — I’m not overly interested in the current revenue stream from it at the moment— though I do believe this will become the fastest growing secondary education sector over the next 5 years—
Education boot camps are a sticky marketing tool. I have a friend who founded and runs several tech and services start-ups and he almost always incorporates education and bootcamps to generate customers loyal to his platform and products, AND generate high margin revenue.
Here’s a lay-persons example from my life— I’m building homes using ICF (insulated concrete forms) — there are dozens of ICF products on the market readily available to me.
I attended training offered by one particular manufacturer— I paid them a couple hundred dollars for the training— (I paid them, they didn’t pay me) — and guess what? The return on investment for them is hundreds of thousands of dollars in sales to me— as I only use their product now— not a bad investment, especially considering I, and all the 23 other people in the class paid them.
It doesn’t matter who’s training I attended— I use their product— not even because it’s the best product on the market, I think almost everything out there is comparable, I use them because they’re familiar and I have an established relationship. As they release new products I will continue to attend additional trainings and send my employees to do the same. It’s sticky.
Palantir used the same strategy aggressively after going public and pursuing commercial growth— I listened to earning call after earnings call with updates on boring bootcamps and education they were providing.
This isn’t apples to apples, but in my opinion it’s a very lucrative marketing and revenue generator. Most of the attendees will simply offer High margin revenue while some of them will become NBIS customers on much larger scales.
Just my two cents.
MillennialFalcon