Microsoft secures a whopping $17.4 billion AI infrastructure partnership with Nebius, stock prices soar
Nebius Group Secures Multibillion-Dollar Deal with Microsoft
In a significant move for the AI infrastructure sector, Nebius Group, an Amsterdam-based company, has announced a deal worth up to $19.4 billion with tech giant Microsoft. This agreement, spanning over five years, will provide dedicated GPU capacity to Microsoft, starting from a new data center in Vineland, New Jersey, later this year.
The deal, initially reported to be worth $17.4 billion, has the potential to increase in value if Microsoft acquires additional services capacity. Nebius, known for its primary business in providing Nvidia graphic processing units and AI cloud services, will offer AI developers computing, storage, managed services, and tools for building, tuning, and running AI models.
The exact nature of the additional services Microsoft may acquire under the deal remains undisclosed. However, the deal underscores the increasing demand for high-performance AI compute.
The announcement sent Nebius' shares soaring over 47% after the bell, reflecting the market's positive response to the deal. Notably, Nebius Group emerged from a deal to split the assets of Russian tech giant Yandex.
This deal marks a shift in Microsoft's AI infrastructure strategy, as CoreWeave, one of Nebius' competitors and Microsoft's largest customer, has previously denied reports of contract cancellations. The deal highlights Nebius's ability to cater to the growing demand for AI infrastructure services.
Nebius' CEO, Arkady Volozh, expressed his optimism about the deal, stating that it will help accelerate the growth of their AI cloud business in 2026 and beyond. As the AI sector continues to evolve, it will be interesting to see how this deal shapes the future of AI infrastructure.
Read also:
- Peptide YY (PYY): Exploring its Role in Appetite Suppression, Intestinal Health, and Cognitive Links
- Toddler Health: Rotavirus Signs, Origins, and Potential Complications
- Digestive issues and heart discomfort: Root causes and associated health conditions
- House Infernos: Deadly Hazards Surpassing the Flames
