LightOn Adjusts 2025 ARR Target Amid Supply Constraints

LightOn, a prominent European generative AI provider, has revised its 2025 annual recurring revenue (ARR) target due to escalating demand for high-end GPUs, resulting in supply constraints. These shortages particularly affect LightOn's core clientele in business and public sectors, delaying project implementations.

To counter these challenges, LightOn developed alternative solutions using more accessible cards and introduced a hybrid solution where clients keep data on-premises while leveraging LightOn’s GPU-operated cloud services. A strategic partnership with Oreus further supports this with local GPU infrastructure in France.

Despite robust interest in its services, the company now projects a €2 million ARR for 2025, delaying its profitability timeline to late 2026, missing prior EBITDA and cash flow forecasts. LightOn remains optimistic about hardware access improvements and anticipates growing opportunities, especially in Europe and the Middle East.