Nebius Seals $17.4 B AI Infrastructure Deal with Microsoft

Nebius Group agreed Monday to supply Microsoft with GPU infrastructure capacity in a five-year contract worth $17.4 billion, potentially rising to $19.4 billion if extra capacity is ordered. Shares jumped 33% in after-hours trading.

Nut Graf: As global demand for generative AI surges, Nebius’s agreement cements its role as a key infrastructure provider and accelerates Microsoft’s efforts to expand cloud-based AI services.

Deal Details

Value and Terms:
Base contract: $17.4 billion over five years.
Upside: Could reach $19.4 billion if additional GPU capacity is procured.
Deployment Plan:
Infrastructure will be rolled out in multiple phases through 2025-2026.
Initial installations at Nebius’s new Vineland, New Jersey data center.

Market Reaction

Nebius stock surged 33% after markets closed, reflecting investor enthusiasm for stable, long-term revenue streams in AI infrastructure.

Executive Commentary

“Beyond attractive economics, this deal accelerates our AI cloud growth trajectory,” said Arkady Volozh, Nebius CEO, highlighting expectations for more major contracts ahead.

Industry Context

Competition for AI computing power is intensifying as tech giants race to develop advanced generative models. Contracts like this signal a deepening partnership between infrastructure specialists and cloud leaders.

Outlook

The agreement not only funds a portion of Nebius’s capital expenditures but also positions Microsoft to meet escalating enterprise demand for AI workloads through 2031 and beyond.