TLDR
- Nebius Group secured a $19.4 billion Microsoft AI infrastructure deal running through 2031
- Stock surged 49-60% on the announcement, reaching record highs
- Deal provides AI computing power through New Jersey data center using Nvidia chips
- Microsoft continues expanding third-party AI partnerships to meet growing demand
- First major enterprise contract for Nebius with more deals expected
Nebius Group stock rocketed higher after announcing a massive AI computing deal with Microsoft. The Amsterdam-based company will provide up to $19.4 billion worth of infrastructure services over the next six years.
The partnership represents Nebius’s first long-term contract with a major technology company. Microsoft will access AI computing power through a New Jersey data center operated by Nebius.
Shares jumped between 49% and 60% depending on the trading session. The stock hit all-time highs following the announcement.
Microsoft Expands AI Infrastructure Network
Microsoft stock gained modestly on the news. The tech giant continues building partnerships with third-party providers to meet surging AI demand.
OpenAI, one of Microsoft’s largest Azure customers, has been seeking additional computing capacity. ChatGPT usage growth has strained existing infrastructure resources.
Microsoft already works with CoreWeave for AI computing services. The company uses a multi-vendor approach to scale capacity quickly.
CoreWeave stock jumped 7.1% on the Nebius announcement. The company remains well below its June peak despite recent gains.
Nebius uses Nvidia graphics processing units to power its data centers. Nvidia serves as both a chip supplier and investor in the company.
The deal runs through 2031 with potential for additional capacity purchases. Specific service delivery timelines were not disclosed.
Growing AI Computing Market
Nebius had already doubled in value this year before the Microsoft deal. The company’s market cap exceeded $15 billion at Monday’s close.
The stock surge reflects strong investor interest in AI infrastructure providers. Companies offering computing power for AI training have attracted significant investment.
Nebius expanded its US operations last year with offices in San Francisco, Dallas and New York. The company aims to serve American AI businesses from these locations.
The Microsoft partnership validates Nebius’s enterprise customer strategy. Previous growth came mainly from smaller AI startups and emerging companies.
Nebius rebranded from Yandex NV last year after Russian investors bought Yandex’s search assets. The restructuring allowed focus on AI infrastructure services.
Company executives said they are exploring financing options to accelerate growth. The Microsoft deal enables faster expansion than originally planned.
Nvidia stock gained 1.5% but remains below its 50-day moving average. The chip maker has invested in both Nebius and CoreWeave.
CoreWeave launched a new ventures arm Tuesday to invest directly in AI companies. The move shows infrastructure providers diversifying beyond basic services.
