Nebius Secures Landmark AI Infrastructure Contract with Microsoft
Nebius Group’s shares surged over 60% in after-hours trading on Monday following the announcement of a multibillion-dollar agreement with Microsoft. The Amsterdam-based company, a provider of Nvidia GPUs used for AI model training, will supply computing resources to Microsoft valued at up to $19.4 billion across five years.
Details of the Agreement and Deployment
The contract specifies that Nebius will deliver GPU services from a data center located in New Jersey. According to a recent SEC filing, the deployment of these services will occur in multiple phases throughout 2025 and 2026. The total contract value is $17.4 billion, with Microsoft retaining an option to purchase an additional $2 billion in services by 2031.
Background and Market Context
Nebius, formerly known as Yandex NV before rebranding last year, has been actively expanding its footprint in the U.S., opening offices in San Francisco, Dallas, and New York. The company emphasizes that its U.S. presence enables closer customer relationships and support for American AI enterprises.
Microsoft’s move to engage Nebius underscores the growing demand for cloud infrastructure capable of supporting intensive AI workloads. OpenAI, a key Azure customer, has been seeking additional capacity amidst rising usage of ChatGPT, recently contracting with Google’s cloud services. Microsoft has also partnered with CoreWeave, another AI infrastructure provider, which has secured its own multibillion-dollar deal with OpenAI.
Market Reaction and Future Outlook
Nebius had already more than doubled its market capitalization this year, closing Monday with a valuation exceeding $15 billion. Following the announcement, CoreWeave’s shares rose about 5% in after-hours trading, while Microsoft’s stock remained largely unchanged.
The company indicated it is evaluating financing avenues to accelerate growth beyond initial plans, signaling confidence in expanding its capabilities to meet surging AI infrastructure demand.
While this deal marks a significant milestone for Nebius, the broader AI infrastructure sector remains competitive and rapidly evolving, with major cloud providers and specialized firms vying to capture growing enterprise needs.
— Reporting by Thomas Fuller; additional contributions from CNBC’s Ari Levy.
FinOracleAI — Market View
The announcement of Nebius’ multibillion-dollar AI infrastructure contract with Microsoft is a strong positive catalyst for the company’s stock, reflecting increased market confidence in its growth prospects and strategic positioning within the AI ecosystem. The deal highlights rising demand for specialized GPU-powered cloud resources driven by AI adoption, benefiting Nebius amid competitive pressures from other providers like CoreWeave.
Risks include execution challenges in scaling infrastructure rapidly and potential shifts in Microsoft’s sourcing strategies. Investors should monitor Nebius’ financing moves and contract implementation progress, as well as broader cloud infrastructure capacity dynamics.
Impact: positive
