Nebius Shares Soar as $17.4 B Microsoft AI Deal Unveiled

Nebius Group’s stock jumped 55% to close at $99.20 on Tuesday after the Amsterdam-based AI infrastructure provider signed a five-year agreement to supply Microsoft with GPU services valued at $17.4 billion, potentially rising to $19.4 billion if expanded.

The remarkable rally underscores surging demand for high-performance AI cloud capacity as tech giants race to scale generative AI operations.

Deal Highlights

• Five-year contract with Microsoft to deliver GPU-powered AI computing from Nebius’s new New Jersey data center, starting later this year.
• Base value of $17.4 billion, expandable to $19.4 billion as Microsoft’s requirements grow.
• Partnership marks Nebius’s first major hyperscaler deal, validating its GPU-as-a-Service model.

Market Reaction

Investors drove Nebius shares up nearly 55% in early trading, adding roughly $7.7 billion to its market capitalization of $15.3 billion. Competing AI infrastructure stocks saw more modest gains: CoreWeave rose about 6.6%.

Analysts lauded the agreement’s long-term revenue visibility. Alexander Platt of DA Davidson noted that the contract significantly de-risks Nebius’s planned capacity expansion and positions it to capture future hyperscaler and AI lab engagements.

Company Background

Founded from Yandex’s spun-off assets and headquartered in Amsterdam, Nebius specializes in turnkey AI cloud services built on NVIDIA GPU technology. The Microsoft deal represents its first long-term commitment to a major technology partner, signaling confidence in Nebius’s data center build-out and software stack.

As hyperscalers confront a shortage of AI computing resources, Nebius’s greenfield projects-like its Vineland, New Jersey facility-are poised to bridge the capacity gap, fueling the next wave of generative AI deployments.