Nebius Secures $19.4 Billion Microsoft Deal, Plans $3 Billion Expansion

Nebius Plans to Raise $3 Billion to Expand After Microsoft Deal

Nebius Group NV plans to raise $3 billion in convertible notes and equity to help it expand, two days after announcing a deal to provide artificial intelligence infrastructure to Microsoft Corp. that could be worth as much as $19.4 billion. The new financing includes $2 billion in convertible notes as well as $1 billion in new shares, the Amsterdam-based company said in a statement on Wednesday. The company said the funds will pay for its expansion, "including the acquisition of additional compute power and hardware." Nebius has promised Microsoft dedicated capacity from a new data center in Vineland, New Jersey, beginning later this year.

Microsoft inks near $20B deal with company of ex-Yandex exec

Netherlands based Nebius Group to deliver capacity from facility in New Jersey As the AI frenzy shows no signs of letting up, Microsoft has signed an agreement that could be worth up to $19.4 billion with Netherlands-based Nebius Group - formerly known as Yandex N.V. - in exchange for access to its GPU infrastructure over five years. The Amsterdam-based GPU costermonger is owned by Dutch parent company the Nebius Group, the outfit formerly known as Yandex N.V. Back in 2024, the Dutch group split off entirely from its Russia ops, keeping its AI-focused businesses in cloud, data, self-driving cars and education tech. Yandex's cofounder and former chief Arkady Volozh is Nebius's chief exec. In August of 2023, about a year after stepping down as Yandex's CEO, Volozh publicly denounced Russia's invasion of Ukraine. The company no longer has ties to Russia. Nebius says it will deliver dedicated capacity to Microsoft from its new datacenter sited in Vineland, New Jersey. These GPU services will be deployed in several tranches during 2025 and 2026, with the total contract value expected to be about $17.4 billion through 2031. However, the Windows-maker has the option to acquire additional services or capacity under the agreement, which would bring the total contract value to about $19.4 billion, Nebius states in its Form 6-K regarding the deal, filed with the US Securities and Exchange Commission. The GPU biz expects to finance the capital expenditure associated with the contract - i.e. the purchase of any further kit it will need to deliver the services - through a combination of cash flow coming from the deal and the issuance of debt secured against the contract. Nebius is also evaluating a number of additional financing options to enable significantly faster growth than originally planned, and will update investors in due course. Founder and chief exec Volozh said the economics of this agreement are attractive in their own right, and it will help the company in growing its AI cloud business in future, with more deals like this to come. "Nebius's core AI cloud business, serving customers from AI startups to enterprises, is performing exceptionally well. We have also said that, in addition to our core business, we expect to secure significant long-term committed contracts with leading AI labs and big tech companies," he stated. Microsoft refused to comment. The contract with Nebius shows that Microsoft is still plowing money into more infrastructure for AI services, despite the fact that the technology has few discernible business benefits as yet. A UK government department recently reported that its three-month trial of Microsoft's M365 Copilot found no real gain in productivity, for example, while The Reg reported last year that Microsoft was imploring third party suppliers to sell its licenses for AI-enabled tools to customers who are still to be convinced of their value. Earlier this year, the company's president and vice chair Brad Smith declared that Microsoft would invest $80 billion in 2025 on infrastructure to train and deploy AI models. There then followed a period of confusion where it was reported that the megacorp was cancelling leases on some datacenter capacity, sparking concerns that it had overestimated demand for AI services and the compute infrastructure it needs to drive them. Microsoft tried to quash this talk on its earnings call in May, where CEO Satya Nadella said his company was merely adjusting its portfolio of leases "to be positioned for the workload growth of the future." Nebius isn't the only rent-a-GPU biz that Microsoft has signed deals with. Earlier this year, CoreWeave revealed in SEC filings that 77 percent of its revenues came from just two customers during 2024, with Microsoft accounting for 62 percent. Being heavily reliant on the whims of one large customer is a risky game that Nebius will no doubt be mindful of. ®

AI infrastructure company Nebius to raise $3 billion to fuel growth

LONDON, Sept 10 (Reuters) - Nebius Group (NBIS.O), opens new tab said on Wednesday it would raise $3 billion to fuel growth in its core artificial intelligence cloud business, on the heels of its $17.4-billion deal with Microsoft (MSFT.O), opens new tab. The financing includes a $2 billion private offering of convertible senior notes and a $1 billion underwritten public offering of the company's class A shares. Goldman Sachs is lead book-running manager on the public offering alongside Morgan Stanley, BofA Securities and Citigroup as additional book-running managers. Nebius said it will use the cash to finance continuing growth, including the acquisition of additional compute power and hardware, securing land plots with reliable providers and expanding its data center footprint. On Monday, Amsterdam-based Nebius announced it would provide Microsoft with GPU infrastructure capacity over a five-year term. Microsoft may also acquire additional services capacity under the deal, bringing the total contract value to about $19.4 billion. On Tuesday, its Nasdaq-listed shares soared over 49% to a record high, driven by the Microsoft deal. They are up 245% so far this year. Shares were down 5.6% in pre-market trading on Wednesday. Nebius emerged from a deal to split the assets of Russian tech company Yandex. Global demand for data center capacity has risen sharply in recent years as companies tap into new technologies to run their businesses, especially after the emergence of generative artificial intelligence. Reporting by Lucy Raitano; Editing by Amanda Cooper, Kirsten Donovan Our Standards: The Thomson Reuters Trust Principles., opens new tab

Microsoft taps Nebius to supply up to $20bn of AI computing power

Microsoft has signed a deal worth up to $20bn with the artificial intelligence infrastructure group Nebius to supply computing power for the tech giant's AI operations over five years. It is the latest major deal for an AI cloud computing provider -- a small group of companies known as "neoclouds" -- as tech companies spend hundreds of billions of dollars to build the infrastructure needed to run their powerful AI models. Nebius's shares soared as much as 68 per cent to $108 in after-hours trading following the announcement. The $15bn company was formed last year by splitting off the overseas operations of Yandex, Russia's biggest internet group. Rival CoreWeave's shares rose more than 5 per cent as the deal signalled continued demand for AI infrastructure. Under the deal, Microsoft will lease computing power from Nebius's stock of graphics processing units (GPUs) -- the high-performance chips on which AI models are run -- at its new data centre in Vineland, New Jersey. Nebius said the contract was worth $17.4bn over the next five years, but that it could expand to $19.4bn if Microsoft increases its compute demands. Microsoft did not immediately respond to a request for comment. Nebius said it would finance the construction of its data centre and buy the necessary chips with cash flow from the deal as well as by raising debt secured against the contract. GPUs have become a lucrative asset class in the past two years since the launch of OpenAI's ChatGPT kick-started a wave of investment in AI infrastructure. Neocloud groups have raised billions of dollars of debt against their stash of chips. CoreWeave, which went public in March and is now worth about $45bn, has borrowed more than $12bn using its GPUs and services contracts with tech companies as collateral for the loans. Microsoft signed contracts with CoreWeave worth as much as $10bn last year, but later chose not to exercise an option for a further $12bn of data centre capacity, the Financial Times has reported. CoreWeave subsequently signed contracts to supply computing power to OpenAI worth roughly $12bn. Microsoft in July said its annual capital expenditure on AI would reach $120bn, up from $88bn the previous year and almost quadruple the $32bn in 2023. Amsterdam-headquartered Nebius is racing to build out new data centres for clients including French AI group Mistral. Its biggest data centre is in Finland but it has signalled it would expand in the US, where it said demand from customers is stronger than in Europe. Arkady Volozh, founder and chief executive of Nebius, said: "The economics of the deal are attractive in their own right, but, significantly, the deal will also help us to accelerate the growth of our AI cloud business even further in 2026 and beyond." Shares in US-listed Yandex were suspended in 2022 following Russia's full-scale invasion of Ukraine. After a protracted negotiation with the Kremlin, Yandex struck a $5.4bn deal in February to sell its core Russian business to a consortium of investors. Nebius was formed from the remainder of Yandex's former international operations.

Nebius' stock soars 60% on multibillion-dollar AI infrastructure deal with Microsoft

Amsterdam-based Nebius will delivery computing resources to Microsoft using a data center in New Jersey, according to a press release. Nebius changed its name from Yandex NV last year after Russian investors bought Yandex's Russian-language search engine and other assets. Microsoft is increasingly looking to third parties to meet demand for cloud infrastructure, particularly in AI. OpenAI, one of Microsoft's top Azure cloud customers, has been searching for additional capacity as users ramp up their adoption of ChatGPT. Microsoft has also turned to CoreWeave for additional AI computing power, and OpenAI has signed a direct agreement with CoreWeave that's worth billions of dollars. CoreWeave shares were up about 5% after hours, while Microsoft shares were little changed. Nebius said it's looking at financing options to grow faster than it had planned, according to a statement. Founded in 1989, Nebius said in November that it has opened office space in San Francisco, Dallas and New York as it expands in the U.S. "Growing our presence in the US means we can be closer to our customers and support innovative American AI businesses on their journey into the future," the company wrote in a blog post at the time. Prior to the post-market pop, Nebius had already more than doubled in value this year, closing on Monday with a market cap of just over $15 billion.

Nebius leaps after $17.4-billion AI computing deal with Microsoft

Sept 9 (Reuters) - Nebius Group's (NBIS.O), opens new tab shares jumped 41% to $90.3 on Tuesday as investors cheered its $17.4-billion deal supplying AI infrastructure to Microsoft (MSFT.O), opens new tab over a five-year period. The agreement, which could expand to $19.4 billion if Microsoft increases demand, underscores the growing need for high-performance AI data centers amid a global rush to develop advanced generative artificial-intelligence technologies. The stock, which has more than doubled this year, rose 41.3% in early trading, while shares of rival CoreWeave gained 8.1%. Analysts believe Nebius is now well positioned to win additional marquee customers, including other hyperscalers and frontier AI labs, as it expands its data center footprint through upcoming greenfield projects. "This deal provides unprecedented clarity on the company's long-term revenue potential and significantly de-risks its planned capacity buildout," said Hamed Khorsand, analyst at BWS Financial. Microsoft, which has repeatedly flagged a shortage of AI cloud infrastructure due to soaring client needs, has been turning to third-party providers to bridge the gap. The tech major has a similar multibillion-dollar deal with CoreWeave (CRWV.O), opens new tab, which also has a substantial contract with OpenAI for AI computing resources. Founded from the spinoff of Russian tech giant Yandex's assets, Amsterdam-based Nebius will primarily supply Microsoft with dedicated GPU infrastructure from the company's new data center in Vineland, New Jersey, beginning later this year. Nebius' core business consists of providing clients with full-stack AI cloud services built on Nvidia (NVDA.O), opens new tab computing, giving AI developers the software and hardware tools and services needed to build and run their models. Reporting by Kritika Lamba in Bengaluru; Editing by Pooja Desai Our Standards: The Thomson Reuters Trust Principles., opens new tab

Nebius and Microsoft to collaborate on multi-billion AI infrastructure agreement

New Jersey data center will be the first project under the partnership Former Yandex spinoff Nebius, now headquartered in Amsterdam, has signed a multi-year agreement with Microsoft to deliver AI infrastructure to the tech giant. The contract, valued at $17.4 billion until 2031, will begin later this year with the construction of a new data center in Vineland, New Jersey. The announcement was complemented by a 6-K filing, revealing that the deal could reach $19.4 billion if Microsoft decides to acquire additional services and/or capacity. Nebius founder and CEO Arkady Volozh said that the Microsoft deal marks just the first of a number of "significant long-term committed contracts with leading AI labs and big tech companies." Volozh also noted that Nebius expects the deal to help "accelerate the growth of [its] AI cloud business even further in 2026 and beyond," remarking that the company "is [already] performing exceptionally well." Backing this was the 50% rise in shares two days after the announcement, following a 60% extended trading rise on the announcement day. Nebius shares are currently valued at $95.72, up from $64.19 prior to the announcement. Nebius posted a 625% year-over-year and 106% quarter-on-quarter increase in revenue to $105.1 million in Q2, attributing the growth to high demand for AI infrastructure like compute, software and services. This is up from $55.3 million in Q1 revenue. Its Microsoft deal will be partly funded by cash flow from the deal, and partly by short-term loans that have seen "enhanced" terms thanks to Microsoft's solid backing. Microsoft has not publicly commented on the deal. Besides Microsoft, Nebius has already received investments from other tech leaders, including Nvidia and Accel. Looking ahead, Nvidia CFO Colette Kress expects AI infrastructure to reach $3-4 billion by 2030. TechRadar Pro has reached out to Microsoft for its perspective on the deal. Any update will be posted here.

Nebius signs $17.4 billion AI infrastructure deal with Microsoft, shares jump

Sept 8 (Reuters) - Nebius Group (NBIS.O), opens new tab said on Monday it will provide Microsoft (MSFT.O), opens new tab with GPU infrastructure capacity, in a deal worth $17.4 billion, over a five-year term, sending its shares soaring over 47% after the bell. The deal underscores the surging demand for high-performance AI compute, as companies invest heavily to bolster their AI infrastructure. Microsoft may also acquire additional services capacity under the deal, bringing the total contract value to about $19.4 billion. Nebius' core business involves providing Nvidia (NVDA.O), opens new tab graphic processing units and AI cloud as services. Nebius offers AI developers the computing, storage, managed services and tools they need to build, tune and run their AI models, with the help of its cloud software architecture and in-house designed hardware. Nebius will provide Microsoft access to dedicated GPU infrastructure capacity from its new data center in Vineland, New Jersey, starting later this year. "The economics of the deal are attractive in their own right, but, significantly, the deal will also help us to accelerate the growth of our AI cloud business even further in 2026 and beyond," Nebius CEO Arkady Volozh said. Microsoft is the largest customer of CoreWeave (CRWV.O), opens new tab -- one of Nebius' competitors -- which earlier this year denied media reports that said it had seen contract cancellations from the hyperscaler. Amsterdam-based Nebius Group emerged from a deal to split the assets of Russian tech giant Yandex. Reporting by Juby Babu in Mexico City; Editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab

Microsoft signs AI infrastructure deal with Nebius Group in a deal worth $17.4 billion

The deal underscores the surging demand for high-performance AI computers, as companies invest heavily to bolster their AI infrastructure. Microsoft may also acquire additional services capacity under the deal, bringing the total contract value to about $19.4 billion. Nebius' core business involves providing Nvidia graphic processing units and AI cloud as services. Nebius offers AI developers the computing, storage, managed services and tools they need to build, tune and run their AI models, with the help of its cloud software architecture and in-house designed hardware.

Microsoft turns to Nebius in nearly $20B AI infrastructure deal - SiliconANGLE

Microsoft turns to Nebius in nearly $20B AI infrastructure deal Microsoft Corp. has signed a deal with artificial intelligence infrastructure provider Nebius Group N.V. worth up to nearly $20 billion to provide dedicated GPU infrastructure capacity from its new data center in Vineland, New Jersey, starting later this year. The deal is worth $17.4 billion over five years, with a pre-purchased option clause extending the potential value to $19.4 billion if Microsoft increases its compute demands. Nebius said it would finance the construction of its new data center and buy the necessary chips with cash flow from the deal as well as by raising debt secured against the contract. The company is also evaluating a number of additional financing options to enable significantly faster growth than originally planned and plans to update the market on its financing strategy in due course. "Nebius's core AI cloud business, serving customers from AI startups to enterprises, is performing exceptionally well. We have also said that, in addition to our core business, we expect to secure significant long-term committed contracts with leading AI labs and big tech companies," said Arkady Volozh, founder and chief executive officer of Nebius, in a statement. "I'm happy to announce the first of these contracts and I believe there are more to come. The economics of the deal are attractive in their own right, but, significantly, the deal will also help us to accelerate the growth of our AI cloud business even further in 2026 and beyond." Based in Amsterdam, Nebius was spun out of Russian search giant Yandex NV in February 2023 and has since been backed by Nvidia Corp., among others. Its upcoming Vineland facility, which the company plans to roll out in phases beginning later this year and extending into 2026, is promising access to fresh, high-performance GPU capacity, making it ideal for Microsoft's growing computation needs. Not surprisingly, the news was well received by investors, with Nebius shares surging nearly 40% in late trading. This deal comes after Microsoft previously relied heavily on CoreWeave Inc. for extra GPU capacity but did not sign a comparable long-term contract and passed on the opportunity to lock in $12 billion worth of CoreWeave's GPU capacity. That capacity was subsequently snapped up by OpenAI instead. The deal also highlights how high-value contracts like the new Nebius deal are increasingly vital in the AI infrastructure supply chain as the race for AI dominance continues at full speed.

Nvidia-Backed Nebius Stock Soars 50% on AI Infrastructure Deal With Microsoft

Nebius said this was the first of what it expects to be similar contracts with big AI labs and tech firms. Shares of Nebius Group (NBIS) soared 50% in early trading Tuesday after the artificial intelligence infrastructure company struck a deal with Microsoft (MSFT) that could be valued as much as $19.4 billion. Microsoft agreed to pay the Nvidia-backed (NVDA) firm, which completed its split from Russian internet giant Yandex last year, $17.4 billion over five years to provide artificial intelligence infrastructure for a new data center in New Jersey. Microsoft "may also acquire additional services and/or capacity" for another $2 billion under the agreement. Founder and CEO Arkady Volozh said this was the first of what Nebius expects will be "significant long-term committed contracts with leading AI labs and big tech companies." With Tuesday's surge, Nebius shares have more than tripled in value since the start of the year. Microsoft shares were up less than 1% in recent trading and have added close to 20% year-to-date.

Jane Street-backed Nebius Group surges 52% intraday after Microsoft pact; 1-year gains top 330%

Nebius Group N.V. shares surged 52% on Nasdaq after announcing a multi-billion dollar AI infrastructure deal with Microsoft. The agreement ensures long-term committed capacity from Nebius' new Vineland, New Jersey data center. Shares of Jane Street Group-backed Nebius Group N.V. surged 52% to hit the day's high of $97.87 on Nasdaq in the initial trade on Tuesday reacting to the company's announcement of a multi-billion dollar agreement with Microsoft for AI infrastructure. The Amsterdam-headquartered and Nasdaq listed AI infrastructure company on Monday said that it will deliver AI infrastructure to Microsoft. "Under this multi-year agreement, Nebius will deliver dedicated capacity to Microsoft from its new data center in Vineland, New Jersey start"ing later this year," the company filing said. Jane Street, which holds 687,953 shares in the company which are worth $44.07 million is among a clutch of marquee investors which also include Goldman Sachs Group Inc, Jpmorgan Chase & Co and Citadel Advisors Llc. The shares were trading amid high volumes where 11.75 million shares changed hands around 10:33 AM ET (8 pm India Time). Commenting on the development, Arkady Volozh, founder and CEO of Nebius, said that the company's core AI cloud business is serving customers from AI startups to enterprises, and is performing exceptionally well. "We have also said that, in addition to our core business, we expect to secure significant long-term committed contracts with leading AI labs and big tech companies. I'm happy to announce the first of these contracts, and I believe there are more to come. The economics of the deal are attractive in their own right, but, significantly, the deal will also help us to accelerate the growth of our AI cloud business even further in 2026 and beyond," Volozh said. Nebius expects to finance the capital expenditure associated with the contract through a combination of cash flow coming from the deal and the issuance of debt secured against the contract in the near term, at terms enhanced by the credit quality of the counterparty. The company is also evaluating a number of additional financing options to enable significantly faster growth than originally planned and will update the market on its financing strategy in due course. Shares of Nebius Group N.V have delivered multibagger returns of over 330% in the past one year with the company's share rising by over 180% in 2025, so far. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Prediction: This Artificial Intelligence (AI) Stock Will Be the Next Household Name by 2031 | The Motley Fool

Over the last few years, companies like Nvidia, Amazon, Alphabet, Microsoft, and Meta Platforms dominated the narrative around artificial intelligence (AI). As the conversation shifted beyond chips and into adjacent applications in data centers and software, names such as Broadcom, Taiwan Semiconductor Manufacturing, and Palantir Technologies also stepped into the spotlight. It's no secret that the AI trade remains heavily concentrated within a small circle of big tech giants. But savvy investors know that opportunity doesn't end with the usual suspects. So here's the question: Have you heard of Nebius Group (NBIS 49.92%)? If not, you're not alone. This sprawling data center company has flown under the radar -- but its unique position in the AI ecosystem could propel it into the spotlight and make it a household name very soon. Unlike many of its louder peers, Nebius did not emerge as a flashy start-up or an established tech titan already entrenched in the AI race. Instead, the company traces its roots back to Yandex -- a Russian internet conglomerate. As geopolitical tensions from the Russia-Ukraine war escalated, Yandex moved to divest its noncore assets. From that process, Nebius was spun off, and it was listed on the Nasdaq exchange last October. Soon after, Nebius completed a capital raise that attracted a particularly notable participant: Nvidia. The undisputed leader in AI chips not only became an investor but also established itself as a strategic ally -- lending Nebius a level of credibility that few companies can claim. At its core, Nebius can be considered a neocloud -- a business specializing in building AI infrastructure by constructing data centers and renting out Nvidia's sought-after graphics processing units (GPUs) to other businesses via the cloud. This model positions Nebius to scale up in lockstep with Nvidia, benefiting as next-generation chips like Blackwell and Rubin enter the market. While infrastructure is its core business, Nebius operates several subsidiaries and also has notable strategic investments. Toloka is in the business of data labeling, an important component of training datasets for AI models. The company also has exposure to autonomous driving systems and robotics through Avride and maintains a software platform called TripleTen that specializes in educating developers across various AI applications. Nebius also has an equity stake in ClickHouse, an open-source database management and analytics system. This diversified ecosystem positions Nebius beyond chips and provides the company with exposure to a number of potentially trillion-dollar ancillary markets as AI workloads become larger and more advanced. In December 2024, Nebius's core infrastructure segment closed the year with an annualized run rate of $90 million. Just two quarters later (by June 30), the company's annual recurring revenue (ARR) run rate surged to $430 million. Even more compelling is that management recently raised full-year guidance to a range of $900 million to $1.1 billion from its prior outlook of $750 million to $1 billion. On Sept. 8, however, everything changed for Nebius as news broke that the company signed a massive new deal with Microsoft. According to regulatory filings, Nebius "will provide Microsoft access to dedicated GPU infrastructure capacity" at its data center in New Jersey. The contract is worth $17.4 billion and runs through 2031. Prior to the deal with Microsoft, Nebius boasted a market capitalization of $15.4 billion -- implying a forward price-to-sales ratio of about 14 at the high end of its ARR forecast. For context, that's about half the multiple CoreWeave commanded at its peak earlier this year following its much-hyped initial public offering. This suggests a couple of takeaways. On one hand, Nebius's valuation has been swept up in the broader bullish AI narrative -- leaving traces of froth. On the other, the stock has remained relatively insulated from the sharp pullbacks seen in more volatile peers like CoreWeave -- a dynamic that could play in its favor as it continues to fight for mindshare in an increasingly crowded and competitive market. Looking ahead, Nebius appears positioned to benefit from secular tailwinds fueling AI infrastructure. Microsoft's new deal emphasizes that cloud hyperscalers are showing no signs of slowing their capital expenditure, and Nebius is already steadily carving out a role as a beneficiary of that spending. I think Nebius will be trading materially higher than it is today by next decade as its relationship with Microsoft matures. That makes it, in my view, a compelling buy-and-hold opportunity.

Nebius Raises $3.7 Billion in Wake of Microsoft AI Deal | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. These sales are designed to help Nebius acquire additional compute power and hardware, secure "strategic high-quality and well-located" plots of lands with reliable providers and to expand its data center footprint, according to a Wednesday (Sept. 10) news release. "We believe this will enable us to aggressively grow our core business in 2026 and beyond as we aim to scale our global data center portfolio, including through new greenfield sites, and the expansion of our customer base, from AI native tech startups to larger enterprises," the company said in the release. The news came days after the company announced a new partnership with Microsoft, a $19.4 billion deal that will see Nebius deliver artificial intelligence (AI) infrastructure to the tech giant. Under this multi-year pact, Nebius will provide dedicated capacity to Microsoft from its new data center in Vineland, New Jersey beginning later this year, the company said in a news release. "Nebius's core AI cloud business, serving customers from AI startups to enterprises, is performing exceptionally well," said Arkady Volozh, founder and CEO of Nebius. "We have also said that, in addition to our core business, we expect to secure significant long-term committed contracts with leading AI labs and big tech companies. I'm happy to announce the first of these contracts, and I believe there are more to come." Nebius, which rebranded from Russian internet company Yandex, sold that business's search engine last year to focus on cloud-computing services for AI operations. The company raised $700 million last year from investors that included Nvidia. This news is happening as multiple industries -- including cloud, data storage, semiconductor manufacturing and data centers -- are enjoying revenue gains from AI, cementing its status as an economic driver, as PYMNTS wrote last week. The chief catalyst is increasing enterprise adoption of AI. A 2025 PYMNTS Intelligence report found that 90% of chief financial officers (CFOs) see "very positive ROI" from generative AI, a significant increase from 26.7% in March 2024. "With gen AI yielding such strong results, CFOs are utilizing the technology in more areas of their businesses," the report said, including employing the technology for high-, medium- and low-impact tasks. Cloud providers are among the clearest beneficiaries of this demand. Research firm Statista has projected that cloud infrastructure service revenues are due to surpass $400 billion for the first time. The cloud market has re-accelerated in recent quarters, primarily due to the AI boom, the company said.

Microsoft partners with Nebius for $19.4 Billion AI cloud computing deal

Microsoft has secured a multiyear agreement with Nebius Group, valued at up to $19.4 billion, to bolster its AI cloud computing capabilities. This deal addresses Microsoft's capacity constraints amidst surging demand for AI services. Nebius will provide dedicated capacity from a new data center, significantly accelerating its AI cloud business growth. Microsoft is really going after its goals in artificial intelligence. It has signed a multiyear cloud partnership with Nebius Group NV worth up to $19.4 billion. The deal shows that even the biggest tech companies are racing to get more computing power to keep up with the growing need for AI services. Nvidia Corp. and Accel Partners are among Nebius' investors, and the company said Monday in a filing with the US Securities and Exchange Commission that the deal will be worth $17.4 billion to $19.4 billion through 2031, as per a report by Bloomberg. The deal is also a big step forward for Nebius, a Yandex spin-off that has quickly gained support from big names like Nvidia and Accel Partners. Microsoft still doesn't have enough space, even though it has spent billions on building new data centers. The need for AI services has always outpaced the growth of its infrastructure, thanks to products like Azure AI and partnerships with OpenAI. Amy Hood, the company's CFO, even said that the company expects to be "capacity constrained" until the end of this year, as per a report by Bloomberg. ALSO READ: Is Discord down? Over 90,000 users across the US affected by the outage Microsoft gets a big boost in computing power by using Nebius' resources. The company didn't say exactly how it would use the extra capacity, but the deal makes sure it has the infrastructure it needs for both its own AI development and cloud services for customers. The partnership is a huge opportunity for Nebius that will change the game. The Microsoft deal will help the company's AI cloud business grow a lot by 2026. Investors are very confident in Nebius' future because its stock has already doubled this year and went up another 50% after the announcement, as per a report by Bloomberg. It is "evaluating a number of additional financing options to enable significantly faster growth than originally planned and will update the market on its financing strategy in due course," Nebius said. The deal will be paid for with a mix of contract-backed debt and cash inflows. The company is also looking into other ways to speed up its growth. Nebius said that this growth, which is happening faster than expected, will need more money, but he thinks the Microsoft deal is a strong base, as per a report by Bloomberg. ALSO READ: iPhone 17 vs iPhone 17 Air vs Pro vs Pro Max: Rumored specs compared The Nebius partnership shows how hard Microsoft is working to stay ahead of the game in AI. The company has also made similar deals with providers like CoreWeave to cover extra demand, in addition to building its own data centers. Microsoft strengthens its ability to scale AI services and products by locking in dedicated capacity from Nebius' New Jersey facility. This guarantees that it can meet both internal needs and customer demand from around the world. What is the value of Microsoft's deal with Nebius? It will be worth between $17.4 billion and $19.4 billion by 2031. Where will Nebius give Microsoft more space? Starting later this year, from a new data center in Vineland, New Jersey.

Why Nebius Group Stock Went to the Moon Today | The Motley Fool

Netherlands-based Nebius Group (NBIS 40.49%) stock shot to the moon Tuesday morning, soaring 40% through 9:45 a.m. ET after announcing it has signed a "multi-billion dollar agreement with Microsoft for AI infrastructure." And how much is "multi-billion," you ask? Well, according to Reuters, the deal will be worth $17.4 billion to Nebius over the next five years -- and potentially as much as $19.4 billion. You've never heard of Nebius? That's no surprise. Neither had I. But according to data from S&P Global Market Intelligence, it's a pretty interesting company. Valued at $15.3 billion (probably quite a bit more than that after today's jump), S&P says Nebius took in only $249 million in revenue last year -- but turned $243.5 million of that into profit. (That's a net profit margin of 97.7%.) Impressive. And now I can only imagine what kind of profits Nebius might produce with $19.4 billion in new revenue coming in. According to the company's 6-K filing with the SEC, Nebius will be providing "dedicated GPU infrastructure capacity" to Microsoft (MSFT 0.23%) "in tranches" -- which is to say, leasing out data center access in stages -- at its new data center in Vineland, New Jersey. Leasing will begin in 2025 and continue to expand in 2026, then continue through at least 2031. Nebius will incur significant capital expenses as it conducts its buildout, at the same time as it takes in significant revenue from Microsoft. The company intends to use the latter to finance the former, but will also be taking on debt to pay for the new data center's construction. It's a heavy financial commitment, and only time will tell if it's worth it for Nebius.

Nebius signs $17.4 billion AI infrastructure deal with Microsoft, shares jump - The Economic Times

Nebius Group said on Monday it will provide Microsoft with GPU infrastructure capacity, in a deal worth $17.4 billion, over a five-year term, sending its shares soaring over 47% after the bell. The deal underscores the surging demand for high-performance AI compute, as companies invest heavily to bolster their AI infrastructure. Microsoft may also acquire additional services capacity under the deal, bringing the total contract value to about $19.4 billion. Nebius' core business involves providing Nvidia graphic processing units and AI cloud as services. Nebius offers AI developers the computing, storage, managed services and tools they need to build, tune and run their AI models, with the help of its cloud software architecture and in-house designed hardware. Nebius will provide Microsoft access to dedicated GPU infrastructure capacity from its new data center in Vineland, New Jersey, starting later this year. "The economics of the deal are attractive in their own right, but, significantly, the deal will also help us to accelerate the growth of our AI cloud business even further in 2026 and beyond," Nebius CEO Arkady Volozh said. Microsoft is the largest customer of CoreWeave - one of Nebius' competitors - which earlier this year denied media reports that said it had seen contract cancellations from the hyperscaler. Amsterdam-based Nebius Group emerged from a deal to split the assets of Russian tech giant Yandex.

Nebius wins up to $19.4 billion data center deal with Microsoft By Investing.com

Investing.com -- Nebius entered into a commercial agreement with Microsoft to provide dedicated GPU infrastructure capacity at its new data center in Vineland, New Jersey, the company announced on Monday.. The five-year agreement, valued at approximately $17.4 billion through 2031, involves deploying GPU services in several tranches during 2025 and 2026. The contract value could increase to about $19.4 billion if Microsoft acquires additional services or capacity. Cash flow from the agreement will help finance part of the capital expenditure associated with the project. The GPU infrastructure will be delivered in multiple phases, with specific deployment timelines set for the next two years. Arkady Volozh, founder and CEO of Nebius, said: "Nebius's core AI cloud business, serving customers from AI startups to enterprises, is performing exceptionally well. We have also said that, in addition to our core business, we expect to secure significant long-term committed contracts with leading AI labs and big tech companies. I'm happy to announce the first of these contracts, and I believe there are more to come. The economics of the deal are attractive in their own right, but, significantly, the deal will also help us to accelerate the growth of our AI cloud business even further in 2026 and beyond."

Nebius leaps after $17.4-billion AI computing deal with Microsoft

(Reuters) - Nebius Group's shares jumped 41% to $90.3 on Tuesday as investors cheered its $17.4-billion deal supplying AI infrastructure to Microsoft over a five-year period. The agreement, which could expand to $19.4 billion if Microsoft increases demand, underscores the growing need for high-performance AI data centers amid a global rush to develop advanced generative artificial-intelligence technologies. The stock, which has more than doubled this year, rose 41.3% in early trading, while shares of rival CoreWeave gained 8.1%. Analysts believe Nebius is now well positioned to win additional marquee customers, including other hyperscalers and frontier AI labs, as it expands its data center footprint through upcoming greenfield projects. "This deal provides unprecedented clarity on the company's long-term revenue potential and significantly de-risks its planned capacity buildout," said Hamed Khorsand, analyst at BWS Financial. Microsoft, which has repeatedly flagged a shortage of AI cloud infrastructure due to soaring client needs, has been turning to third-party providers to bridge the gap. The tech major has a similar multibillion-dollar deal with CoreWeave, which also has a substantial contract with OpenAI for AI computing resources. Founded from the spinoff of Russian tech giant Yandex's assets, Amsterdam-based Nebius will primarily supply Microsoft with dedicated GPU infrastructure from the company's new data center in Vineland, New Jersey, beginning later this year. Nebius' core business consists of providing clients with full-stack AI cloud services built on Nvidia computing, giving AI developers the software and hardware tools and services needed to build and run their models. (Reporting by Kritika Lamba in Bengaluru; Editing by Pooja Desai)

Nebius jumps on $17.4-billion AI computing deal with Microsoft

(Reuters) -Nebius Group's shares soared nearly 50% to $95.7 on Tuesday as investors cheered its $17.4-billion deal supplying AI infrastructure to Microsoft over a five-year period. The partnership comes amid an unprecedented surge in demand for artificial-intelligence data centers, as businesses accelerate the race to build more advanced generative AI technologies. The stock, which has more than doubled this year, rose 49.5% in premarket trading, while shares of rival CoreWeave were up 6.3%. Nebius is set to add around $7.7 billion to its $15.3-billion market capitalization, if gains hold. "We continue to believe that Nebius is well set up to bring on other high-profile customers, including other hyperscalers or frontier AI labs, as the company continues to build out their data center capacity with upcoming greenfield opportunities," said Alexander Platt, analyst at DA Davidson. Microsoft, which has repeatedly flagged a shortage of AI cloud infrastructure due to soaring client needs, has been turning to third-party providers to bridge the gap. The tech major has a similar multibillion-dollar deal with CoreWeave, which also has a substantial contract with OpenAI for AI computing resources. Nebius' core business consists of providing clients with full-stack AI cloud services built on Nvidia computing, giving AI developers the software and hardware tools and services needed to build and run their models. (Reporting by Kritika Lamba in Bengaluru; Editing by Pooja Desai)

Nebius signs $17.4 billion AI infrastructure deal with Microsoft, shares jump

(Reuters) - Nebius Group said on Monday it will provide Microsoft with GPU infrastructure capacity, in a deal worth $17.4 billion, over a five-year term, sending its shares soaring over 47% after the bell. The deal underscores the surging demand for high-performance AI compute, as companies invest heavily to bolster their AI infrastructure. Microsoft may also acquire additional services capacity under the deal, bringing the total contract value to about $19.4 billion. Nebius' core business involves providing Nvidia graphic processing units and AI cloud as services. Nebius offers AI developers the computing, storage, managed services and tools they need to build, tune and run their AI models, with the help of its cloud software architecture and in-house designed hardware. Nebius will provide Microsoft access to dedicated GPU infrastructure capacity from its new data center in Vineland, New Jersey, starting later this year. "The economics of the deal are attractive in their own right, but, significantly, the deal will also help us to accelerate the growth of our AI cloud business even further in 2026 and beyond," Nebius CEO Arkady Volozh said. Microsoft is the largest customer of CoreWeave -- one of Nebius' competitors -- which earlier this year denied media reports that said it had seen contract cancellations from the hyperscaler. Amsterdam-based Nebius Group emerged from a deal to split the assets of Russian tech giant Yandex. (Reporting by Juby Babu in Mexico City; Editing by Alan Barona)