Nebius Stock Soars After Inking $17.4B AI Deal with Microsoft
The Yandex spinoff will provide dedicated GPU infrastructure from its new data center, signaling a major move in the AI computing race.
Shares of Nebius Group N.V. (NEX) skyrocketed in after-hours trading following the announcement of a monumental five-year, $17.4 billion deal with Microsoft. The agreement, which could expand to $19.4 billion, will see Nebius provide dedicated GPU infrastructure from its new data center in Vineland, New Jersey, to power Microsoft's expanding artificial intelligence ambitions.
The deal marks a significant moment for Nebius, a spinoff of Russian tech giant Yandex, as it solidifies its position as a key player in the competitive AI infrastructure landscape. According to the , Nebius will begin providing services in 2025, with a phased rollout continuing into 2026. This partnership provides Microsoft with a guaranteed pipeline of high-performance computing power, a critical resource in the race to develop and deploy advanced AI models.
The market's reaction was immediate and dramatic, with in extended trading. This underscores the immense value investors are placing on companies that can supply the specialized hardware needed to train and run large-scale AI systems. The deal is also a strategic victory for Nebius, which will use the cash flow from the Microsoft contract to finance the construction of the New Jersey data center and the acquisition of necessary chips.
This move by Microsoft highlights the intense demand for GPU capacity among big tech companies. The Redmond-based giant has been making substantial investments to bolster its AI capabilities, with this deal ensuring access to a new, state-of-the-art facility. The comes after Microsoft reportedly passed on a long-term contract with another infrastructure provider, CoreWeave, which was subsequently secured by OpenAI. This underscores the strategic importance of locking in long-term computing resources in a supply-constrained market.