Nebius Jumps on Microsoft AI Deal Worth $17.4B

Nebius Group secured a five-year, $17.4 billion contract to provide GPU infrastructure to Microsoft. This news caused Nebius’ stock to surge 47% after hours. The contract reflects a strategic move amid rising competition for AI computing power, as firms expand their infrastructure for advanced AI tasks.

Microsoft plans to increase its investment under this agreement, potentially raising the total deal value to around $19.4 billion.

Nebius specialises in AI-focused cloud infrastructure, offering Nvidia-supported GPU resources and custom hardware to support developers in AI model training and deployment.

Starting later this year, Nebius will supply Microsoft with exclusive GPU capacity from its Vineland, NJ data centre. CEO Arkady Volozh noted that, besides favourable financial terms, the partnership will greatly grow their AI cloud business through 2026 and beyond.

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Microsoft, CoreWeave’s largest client and a competitor to Nebius, denied earlier reports of losing contracts this year. Meanwhile, Nebius Group, based in Amsterdam, was established following the asset split from Russian tech giant Yandex.