Nebius Group (NBIS.O) announced on Monday a five-year agreement with Microsoft (MSFT.O) to provide GPU infrastructure capacity, a deal valued at $17.4 billion that could expand to $19.4 billion if additional services are acquired. The news sent Nebius shares surging more than 47% in after-hours trading.
The partnership highlights the escalating demand for high-performance AI compute as tech giants race to secure infrastructure for training and running advanced models. Under the deal, Microsoft will gain access to Nebius’ dedicated GPU infrastructure from a new Vineland, New Jersey data center starting later this year.
Nebius specializes in offering AI cloud services powered by Nvidia GPUs, combining computing, storage, management tools, and in-house designed hardware to support AI developers. CEO Arkady Volozh said the deal is not only financially significant but also positions Nebius for accelerated AI cloud growth from 2026 onwards.
Microsoft already stands as the largest customer of CoreWeave (CRWV.O), another AI infrastructure provider. The Nebius agreement suggests the company is broadening its supply chain to mitigate risks as hyperscaler demand grows.
Amsterdam-based Nebius was formed after the split of Russian tech giant Yandex, and has been expanding rapidly into the U.S. and European AI infrastructure markets.