Nebius soars after signing AI infrastructure deal with Meta worth up to $27 billion over 5 years

Nebius is skyrocketing in early trading on Monday, up nearly 14% as of 8 a.m. ET, after the Amsterdam-based company announced a new five-year deal with Meta worth as much as $27 billion.

The social media giant will initially buy dedicated AI computing capacity across multiple locations for $12 billion, which will be “one of the first large-scale deployments of the NVIDIA Vera Rubin platform,” according to the company’s press release, with delivery beginning in early 2027.

Meta will also buy an additional $15 billion worth of Nebius’ planned capacity if it’s not sold to other customers over the same five-year period.

Nebius added in the press release that its guidance for 2026, in which the company is forecasting an annualized revenue run rate of $7 billion to $9 billion, per its Q4 earnings results, remains unchanged, signaling that the gains from the new deal will likely start rolling in after this fiscal year. This latest deal with Meta, which adds to their previous $3 billion deal announced in November, also notably relies on its partnership with another Big Tech company, Nvidia, which recently invested another $2 billion in Nebius.

This news of another major hyperscaler deal is sparking a bid for many of the other so-called neocloud companies, like CoreWeave, IREN, Applied Digital, Cipher Digital, and Riot Platforms, which also sell hardware and cloud capacity to AI infrastructure-obsessed tech giants.

For Meta, the deal underscores the company’s current financial focus: capital is to be used to expand in AI as quickly as possible, but spending in other areas is to be more cautious. Over the weekend, Reuters reported that the company was looking at layoffs that could affect more than 20% of its staff.

So far, dropping tens of billions of dollars on talent and compute capacity hasn’t catapulted Meta to the top of the AI leaderboards — just last week, The New York Times reported that the company was delaying the release of its Avocado model because it simply wasn’t good enough.