Nvidia pours $2 billion into Nebius as AI cloud infrastructure race intensifies

Nebius stock pops 10% on Nvidia $2 billion investment announcement

As part of the deal, the companies will collaborate on AI infrastructure deployment, fleet management, inference and AI factory design and support, according to a release. "Nebius is building an AI cloud designed for the agentic era, fully integrated from silicon to software and powered by NVIDIA's next-generation accelerated compute," Nvidia CEO Jensen Huang said in a statement. "Together, we are scaling the cloud to meet the surging global demand for intelligence." The announcement comes a week after Nvidia unveiled strategic partnerships with Lumentum and Coherent, investing $2 billion in each company. Nvidia also announced a "significant investment" in Mira Murati's Thinking Machines Lab on Tuesday as part of a new multiyear strategic partnership.

Nvidia invests $2 billion in AI cloud company Nebius

Nvidia $NVDA will invest $2 billion in Nebius Group, an AI cloud firm, the companies announced Wednesday. Shares of Nebius rose 10% in pre-market trading on the news, while Nvidia stock was mostly flat. The partnership covers AI factory design, inference infrastructure, fleet management, and early access to Nvidia's next-generation hardware, including the Rubin platform, Vera CPUs, and BlueField storage systems, the companies said. The goal is to enable Nebius to deploy more than 5 gigawatts of capacity by the end of 2030. "AI is at another inflection point -- agentic AI, driving incredible compute demand and accelerating infrastructure buildout," Nvidia CEO Jensen Huang said in a statement. Nebius CEO Arkady Volozh said in a statement that the company was "built for AI since day one." Wednesday's deal builds on an earlier relationship between the two companies. Nvidia had invested in Nebius as part of a $700 million funding round the company closed in late 2024, and held approximately $33 million worth of Nebius shares as of December of that year, according to Bloomberg. Nebius traces its origins to Yandex, Russia's largest internet company. The Amsterdam-based holding company sold Yandex's Russian operations to a group of investors for $5.2 billion and adopted the Nebius name in 2024, according to Bloomberg. The Nebius deal is the latest in a series of large Nvidia investments in companies that deploy its chips. A week before Wednesday's announcement, Nvidia invested $2 billion each in optical components makers Lumentum and Coherent, according to CNBC. In January, Nvidia made a similar $2 billion investment in CoreWeave, a Nebius competitor, according to Bloomberg. Nvidia also contributed $30 billion to OpenAI's $110 billion funding round last month and has said it plans to invest up to $10 billion in Anthropic, according to CNBC. The pattern of Nvidia financing companies that are also its customers has drawn scrutiny. Critics have described the AI investment ecosystem as increasingly circular, with a small number of companies financing one another's infrastructure buildouts and pointing to those commitments as evidence of durable demand.

Nvidia to invest US$2 billion in neocloud Nebius amid AI data center push

Nvidia said on Wednesday it will invest US$2 billion in artificial intelligence cloud company Nebius, adding to the leading chipmaker's growing list of investments in AI firms and data center infrastructure. U.S.-listed shares of Amsterdam-based Nebius jumped over 10 per cent in premarket trading. The world's most valuable firm is investing heavily in the AI ecosystem and expanding data center infrastructure, including significant investments in companies that are often its customers, raising concerns about circular deals. Nebius, an Nvidia customer, will deploy more than five gigawatts of data center capacity by the end of 2030, the companies said. This represents power equivalent to the needs of more than 4 million U.S. households. Last year, Nvidia agreed to deploy at least 10 gigawatts of its systems for OpenAI and later announced a $30 billion investment in the startup. Nebius, along with Coreweave, is among the "neocloud" firms gaining prominence through high-profile deals to supply AI infrastructure to U.S. hyperscalers, including a $17 billion deal with Microsoft, and a $3 billion deal with Meta Platforms. Unlike larger cloud firms that serve a broad range of industries, neoclouds mostly focus on tech customers and offer capacity tailored for AI technology. "Nebius is building an AI cloud designed for the agentic era," Nvidia CEO Jensen Huang said in a statement, adding the partnership will scale the cloud firm to meet the surging global demand for intelligence. The cloud firm reported a sharp jump in capital spending, rising to $2.1 billion in the December quarter from $416 million in the previous year, as it doubles down on capacity expansion.

NVIDIA And Nebius Group N.V. Announce Strategic Partnership To Develop And Deploy Next Generation Of Hyperscale Cloud For AI Market

NVIDIA and Nebius Group N.V. announced a strategic partnership to develop and deploy the next generation of hyperscale cloud for the AI market, from AI natives to enterprises. NVIDIA will invest $2,000 million in Nebius, reflecting NVIDIA?s confidence in Nebius?s business and unique depth of engineering expertise across the full AI technology stack. The partnership deepens Nebius and NVIDIA?s relationship across the full AI technology stack, from AI factory architecture to production software, enabling Nebius to accelerate the buildout of its industry-leading, full-stack AI cloud platform. This partnership builds upon Nebius?s ongoing deployment of NVIDIA infrastructure across its global platform, including multiple gigawatt-scale AI factories in the U.S. To enable Nebius to deploy more than 5 gigawatts of capacity by the end of 2030, NVIDIA will support Nebius?s early adoption of the latest generation of NVIDIA?s accelerated computing platform. Under the terms of the partnership, the companies will collaborate on AI factory design and support, including access to partner design material, design review processes and acceptance, early samples and system software support, bring-up support, and regular system partner business and technical reviews; inference, creating a best-in-class inference and agentic AI stack for developers and enterprises with NVIDIA?s latest software technologies, optimized models and libraries; AI infrastructure deployment, deploying multiple generations of NVIDIA infrastructure across Nebius?s platform through early adoption of NVIDIA computing architectures, including the NVIDIA Rubin platform, NVIDIA Vera CPUs and NVIDIA BlueField storage systems; fleet management, optimizing Nebius?s holistic fleet health by deploying NVIDIA?s latest GPU health monitoring and software recommendations.