Nebius soars after signing a 5-year deal with Microsoft to supply nearly $20 billion worth of AI computing power
Artificial intelligence infrastructure group Nebius jumped more than 50% in early trading on Tuesday after the company announced after the close on Monday a major deal to supply computing power for Microsoft’s AI operations.
Under the agreement, Nebius — which rose from the ashes of Russian tech giant Yandex — will provide Microsoft “access to dedicated GPU infrastructure capacity in tranches at its new data center in Vineland, New Jersey over a five-year term.” The New Jersey data center has a capacity of 300 megawatts. The total contract value through 2031 is $17.4 billion, though, if further capacity is required, the contract value could rise to $19.4 billion.
The deal represents a sizable portion of Microsoft’s proposed annual capital expenditure on AI, which is expected to reach $120 billion by the end of fiscal 2026.
Nebius and competitor CoreWeave are both on the short list of startups that Nvidia has invested in. Nvidia’s small stake in the former is now worth about $120 million.
Under the agreement, Nebius — which rose from the ashes of Russian tech giant Yandex — will provide Microsoft “access to dedicated GPU infrastructure capacity in tranches at its new data center in Vineland, New Jersey over a five-year term.” The New Jersey data center has a capacity of 300 megawatts. The total contract value through 2031 is $17.4 billion, though, if further capacity is required, the contract value could rise to $19.4 billion.
The deal represents a sizable portion of Microsoft’s proposed annual capital expenditure on AI, which is expected to reach $120 billion by the end of fiscal 2026.
Nebius and competitor CoreWeave are both on the short list of startups that Nvidia has invested in. Nvidia’s small stake in the former is now worth about $120 million.
