Nebius Stock Soars 43% After $17.4 Billion AI Infrastructure Deal with Microsoft

• Nebius Group (NBIS) secured a $17.4 billion five-year deal to provide Microsoft (MSFT) with GPU infrastructure capacity, potentially expanding to $19.4 billion with additional services, boosting its shares over 43% to $91.63 after hours amid surging AI compute demand.
• The agreement involves delivering Nvidia (NVDA)-powered AI cloud services from a new Vineland, New Jersey data center starting later this year, enhancing Nebius’ offerings in computing, storage, and tools for AI model development.
• As an Amsterdam-based entity spun from Yandex, Nebius aims to accelerate its AI cloud growth beyond 2026 through this partnership, contrasting with competitors like CoreWeave (CRWV) facing reported contract challenges with Microsoft.

Nebius Group (NBIS) announced a major agreement to supply Microsoft (MSFT) with GPU infrastructure capacity valued at $17.4 billion over five years, highlighting the intense competition and investment in AI computing resources as enterprises scale their artificial intelligence capabilities. This partnership could expand to include additional services, potentially increasing the total contract value to approximately $19.4 billion, and positions Nebius as a key player in the AI cloud ecosystem where demand for high-performance hardware outpaces supply. Shares of Nebius surged more than 43% to $91.63 in after-hours trading, reflecting investor confidence in the deal’s potential to drive further growth in its AI cloud operations beyond 2026, as stated by CEO Arkady Volozh who emphasized its role in accelerating business expansion.

At the heart of Nebius’ offerings are Nvidia (NVDA) graphic processing units integrated into AI cloud services, providing developers with essential computing power, storage, managed services, and tools for building, optimizing, and deploying AI models through proprietary cloud software and custom hardware designs. The infrastructure will be delivered from a new data center in Vineland, New Jersey, commencing later this year, aligning with broader industry trends where hyperscalers like Microsoft seek reliable partners to support their expansive AI initiatives, including advancements in machine learning and generative technologies. Microsoft’s involvement underscores its strategic push into AI, building on commitments to enhance cloud platforms like Azure with robust GPU resources to meet enterprise needs for training complex models.

Nebius, headquartered in Amsterdam, the Netherlands originated from the asset separation of Russian technology firm Yandex, allowing it to focus on international markets and AI infrastructure without legacy constraints. This deal comes amid a landscape where competitors such as CoreWeave (CRWV), Microsoft’s primary customer in similar services, have faced scrutiny over reported contract issues earlier this year, though denied by the company, illustrating the high stakes and volatility in the AI infrastructure sector. Overall, the agreement not only validates Nebius’ technological prowess but also contributes to the ongoing surge in AI-related investments, where access to specialized computing resources remains critical for innovation and competitive advantage in a rapidly evolving digital economy.

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