Nebius soars on new report that details the importance of its near $20 billion deal with Microsoft

Nebius is jumping in premarket trading after a Bloomberg report shed more light on its near $20 billion deal to supply computing power to Microsoft.

Citing people familiar with the matter, the report says that Nebius will utilize more than 100,000 of Nvidia’s flagship Blackwell chips in order to “provide computing power to internal teams creating large language models and a consumer AI assistant” for Microsoft.

The so-called “neocloud” cohort, of which Nebius and CoreWeave are the most prominent in the publicly traded space, effectively serves as overflow capacity for the AI boom. The pair have been on fire amid an all-out frenzy from hyperscalers to accumulate more computing power.

Nebius’ arrangement with Microsoft will allow the tech giant to use its own compute to focus on fulfilling demand from customers.

Remember that the stock market’s intermediate peak in February was accelerated by a breakdown in AI-geared momentum stocks on concerns that Microsoft might have already had too much data center capacity, which came on the heels of the DeepSeek-induced freak-out for the industry. Such worries have since been washed away by a steady wave of spending commitments from leading private and public tech giants that total in the hundreds of billions of dollars.