Nebius signs $17.4B AI infrastructure deal with Microsoft
Nebius Group (NASDAQ: NBIS) signed a multi-year deal to provide dedicated AI computing power to Microsoft, initially valued at $17.4 billion.
The total contract value could reach about $19.4 billion if Microsoft adds more computing capacity under the deal. The announcement sent Nebius shares up more than 47% in after-hours trading.
The Amsterdam-based company will supply Microsoft with dedicated GPU capacity under a five‑year agreement, with deliveries from a new New Jersey data center starting later this year. The facility was first announced in March with an initial capacity of 300MW and planned expansion of up to 400MW.
Nebius’s core business is AI cloud and GPU infrastructure, including compute, storage, managed services and tools, built on its software stack and in‑house designed hardware, alongside Nvidia‑based systems.
The economics of the deal are attractive in their own right, but the deal will also help us accelerate the growth of our AI cloud business in 2026 and beyond,said Arkady Volozh, founder and CEO of Nebius.
In its announcement, Nebius said it expects to fund related equipment spending with cash flow from the contract and loans backed by the deal, with terms supported by Microsoft's strong credit rating. The company is also looking at additional funding options to grow faster.
Microsoft already buys AI compute from Nebius competitor CoreWeave. The Nebius contract adds dedicated capacity for model training and inference. Nebius is headquartered in Amsterdam, emerged from the separation of assets formerly tied to Yandex, and operates R&D hubs in Europe, North America and Israel.
