Nebius Group, a Netherlands-based AI infrastructure provider spun off from Yandex, announced a multibillion-dollar agreement with Microsoft. The deal spans $17.4 billion over five years, with an option to increase up to $19.4 billion if Microsoft scales up its demand for GPU computing capacity (MarketWatch, Reuters).
Under the agreement, Nebius will deliver dedicated GPU infrastructure from a new data center in Vineland, New Jersey, starting later this year (MarketWatch, Reuters). The investment reflects Microsoft's ongoing efforts to expand its AI capabilities and address growing demand for high-performance computing resources (MarketWatch, Financial Times).
Following the announcement, Nebius's stock jumped significantly—up approximately 40% in after-hours trading, signaling strong investor confidence (MarketWatch, Investors, Reuters). Analysts called it a milestone for Nebius, validating its position as a rising contender in the "neocloud" space, alongside firms like CoreWeave, Lambda Labs, and Crusoe (MarketWatch).
Nebius plans to fund the expansion of its data center and GPU inventory through a combination of contract-generated cash flow and debt secured by the agreement, with an eye toward accelerating its AI cloud business growth in 2026 and beyond (Financial Times, MarketWatch).
In summary: Nebius has struck a massive GPU infrastructure deal with Microsoft worth up to $19.4 billion over five years, fueling a sharp surge in its stock price and marking a key moment in its evolution as a major AI infrastructure provider.
