$NBIS Token Factory explained in 15 minutes So I decided to write a little explanation of what the main differentiator of $NBIS is, and that is the "Token Factory" they introduced November last year I will try to simplify this so that every investor can understand it. If you are interested in more technical details, ask me in the comments, and I might be able to explain it. So If someone asked me how I would explain it in one sentence, I would say that Token Factory is an AI platform designed to simplify the deployment, management, and scaling of large language models (LLMs) and other generative AI systems. It is a production-grade inference platform that allows organizations (and it is especially helpful for smaller businesses) to use AI models without the complexity of managing the underlying infrastructure. Token factory is built around inference - the process where you generate outputs from already trained models (for example, asking questions and getting answers from models like ChatGPT). Whenever you ask ChatGPT a question, request code generation, or any other task you have ever done, the model produces a sequence of tokens that are, at the end, transformed into text/document that you can read. In the earliest stages of AI, we just had models like ChatGPT 3, Claude 3, etc. You paid your subscription of $20, and you were able to prompt infinitely, but lately the scale of these prompts increased heavily, and enterprise adoption of these models led to OpenAI, Anthropic, and others to shift from simple subscription pricing to price/token, meaning that each prompt and each task is priced differently. The cost of the token is increasing rapidly with supply not being able to meet demand. This is why $NBIS came with Token Factory, which is basically an optimizer for generating these tokens as efficiently, reliably, and cost-effectively as possible. The name kind of explains itself there. Traditionally, companies that wanted to deploy large AI models had to acquire and manage expensive GPU hardware, configure inference servers, monitor performance, handle traffic spikes, and continuously try to optimize their deployments. This process required companies to have experts in mainly these two fields: 1) Cloud infrastructure 2) Machine learning operations (MLOps) It is quite difficult to obtain a skillful team in these areas, so Nebius decided to go and remove majority of this complexity by providing a managed service that handles not only infrastructure, but also scaling, monitoring, and deployment via Token Factory. Developers can now simply connect to the platform through an API and immediately begin using advanced AI models. So the key strength is the exposure for smaller enterprises to open-source foundation models without acquiring a whole team of experts. Organizations can access and deploy models from families such as Llama, Qwen, DeepSeek, and from the latest announcement also NVIDIA Nemotron. The platform has interfaces that are compatible with widely used AI APIs, making migration and intergration relatively straightforward for development teams. What I did not understand initially, was that Token Factory goes beyond basic inference, it supports the whole lifecycle of AI applications. Users can tune their models on proprietary data to create domain-specific assistants for many industries like finance, healthcare, law and many others. This opens new possibilities like "parameter-efficient fine-tuning", "post-training optimization" that enable companies to customize models without the cost of training it from scratch. There are other fancy applications like Retrieval-Augmented Generation (RAG), where you combine LLMs with external knowledge sources like documents. But I don’t want to bore you to death as I understand majority of investors reading this are not machine learnings experts, so let’s skip this technical part. However, one last major advantage that you should be able to understand about Token Factory is the ability to scale "automatically". When you create an application and demand starts increasing, you usually start running into high latency and capacity problems. Instead of you having to allocate new compute to your application, which takes time and it might cause some downtime for your servers which are costly, Token Factory platform dynamically allocates additional computing resources to maintain both low latency and high throughout. The important thing is that this works the opposite way as well. When demand decreases, resources are released, helping companies optimize costs. This elastic scaling allows Token Factory to attract both small pilot projects to large-scale production deployments serving thousands of users and more. Now that I finished this paragraph, I realize that I completely forgot about one more thing and that is what we call in business "Enterprise governance and security". Token Factory includes features such as role-based access control, team management, authentication integration, usage monitoring, centralized billing and many other things that help companies maintaining control over AI deployments while meeting operational and compliance requirements. To somehow summarize everything, think of Token Factory as the "AWS of AI" or more precisely "AWS of AI inference". Companies bring their applications, Nebius provides the infrastructure and models, and charges for the AI output generated. The more AI is used, the more valuable Token Factory becomes. It is really that simple. I spent more time than I initially wanted on researching Token Factory and its use cases, but it really helped me to understand that this is something that gives $NBIS an unfair advantage against others in the sector. You should really understand this part of their business if you are an investor, so I will gladly answer your questions. If you found this a valuable read, follow me for more. Thanks! (picture is from ChatGTP)

$NBIS, $HIMS, $NVDA There is more but these 3 have so much to give to all of us

Because he worked harder than you Simple as that 9-5 job does not mean you locked in You need to do more than that, everyone does that

Directly from $NBIS more complex read than mine about the Fable 5 ban, but it really highlights the opportunity for $NBIS If they take advantage of this new narrative that appeared basically over night, we might see another inflection point

$NBIS MY TAKE ON ANTHROPIC MODELS BANNED Alright, I spent my morning and afternoon thinking about the implications of the Anthropic’ Fable 5 and Mythos 5 ban. So just a quick summary below for those who are scared of the potential problems for $NBIS: I believe the main thing you need to understand about $NBIS and their business is that they want to become the 4th hyperscaler and not just rent out capacity for other hyperscalers and major frontier labs like OpenAI and Anthropic. These deals are for short-term financing of the buildout. I read a post from @daniel_koss yesterday about $NBIS’s ARR for next year already being 50/50 hyperscaler deals/their own AI cloud. This means that they are already diversified enough if something like this or even something more dramatic happened and demand suddenly dropped by customers (very unlikely). This actually means quite the opposite, because this implies that in the future, you will need open-source models as we will probably see more and more restrictions. Not that this is something new, I always saw open-source models as something that will open doors for industries like healthcare, finance, law, where you need your own models tuned specifically for these industries, but it just shows that this will not be the whole world using ChatGPT or Claude. An even stronger argument is, and I believe I have enough insights as a European, that Europe needs to wake up and start building the AI infrastructure as well. The US basically told us that AI is a weapon, and every major player on a global scale needs to have its own AI. So governments and companies in Europe have a clear incentive to develop more sovereign AI capabilities, and who is better positioned for this than $NBIS? I saw the news when I woke up, so my brain was not able to process the information fast, and I needed some time to reflect on the impact of what happened, but the more I think about it, the more bullish I am about it. I am more bullish on $NBIS than before, and I think this just answers the question: "Is AI useful?" Absolutely! So just my quick take, open to discuss and answer questions in comments

I agree with this take. I think the key takeaway from this should be that AI is something so big that it is never going away, as some people still argue. However, this might put short-term to mid-term pressure on companies like Anthropic and OpenAI as they might lose customers

This is exactly why I am doing all of this! There is nothing more precious in life than helping others and also nothing more humbling than seeing someone struggle because of you That is why I post only what I truly believe in and always try to push you towards right direction

Btw, this should be a wake-up call for Europe Just like that, we lost access to the best model out there, and we have no authority to do anything about it What if all new models from now, are locked away by the US, and we will be forced to use what was available till today

This better gets resolved until Monday or markets are going down $NBIS $IREN $NVDA all indirectly impacted

Economically, this might be a disaster if it keeps happening in the future Anthropic and OpenAI are pouring billions into the development of their models and this drastically decreases their number of users Well, another weekend of researching ahead of me, because of $NBIS and $IREN This might affect the AI trade and I need to run some calculations

It is actually happening Do you remember the quote from Stephen Hawking back in 2014 “AI could spell end of the human race” It might actually happen, because imagine that we are actually close to developing a model that would be able to write a better version of itself alone. Now imagine we create robots that would use these models and they would be able to create better versions of themselves as well. You are getting awfully close to scenarios that we were laughing about when watching sci-fi movies few years ago. It would also connect nicely with the “Great filter” theory answering the Fermi Paradox, which is that the reason for any civilization in the universe not being able to achieve space-faring level, is them destroying their civilization before having access to technology that would allow that. Just a crazy thought for a weekend. I believe and hope we are still far from that level, but to be fair. We have no idea what are the best models capable of as these are not available to the public.

$NBIS will fly But for now, let’s make the bears short it so we get to accumulate lower

This market is not overvalued btw If someone is saying it is, he is lying to you Just take the biggest S&P500 companies: $NVDA undervalued $AAPL fairly valued $GOOG undervalued $AMZN undervalued $META undervalued $TSMC undervalued $MSFT undervalued $AVGO undervalued

I got almost 1000 followers in two weeks Do you know why? Because I can provide you with so much information about $NBIS, $IREN, $HIMS, $OSCR and others in few minutes that you would need to study the companies for hundreds of hours I can do that for you, even if I really prefer people doing research on their own I got many of my followers during red days, because I was there to assure them that everything is fine with their companies and I calmed down their emotions which led to them not selling exceptional companies It is that simple, I provide you with value that is hard to find on X I always stay humble, but at the same time I know what I am capable of and how hard I work Some people think I am ill because I work like 6.5 days a week, but I am just obsessed with getting better I take it responsibly, I can change life of some of my followers if we get few stocks right, let’s keep working hard

Forgot about $ZETA, it can go as much as $50 this year if we get plausible macro environment P/S should be at least 6 Very low multiple for the given growth

Reminder to close out the week: $NBIS is undervalued (PT $350 EOY) $IREN is undervalued (PT $100 EOY) $NVDA is undervalued (PT $260EOY) $HIMS is undervalued (PT $60 EOY) $OSCR is undervalued (PT $40 EOY)

If anything, $HIMS was an opportunity today

Exercise for investors, wrong answers only: $SPCX $170/share $META $560/share Which company is more expensive?

Elon is really making life complicated for me I had to convince retail that $TSLA is not a buy here Now I have to convince them $SPCX is not a buy here