Nebius Group shares soared on Tuesday after the Amsterdam-based firm announced a multi-year deal with Microsoft to deliver AI infrastructure.
Nebius shares rose significantly on Tuesday after the company announced a multi-billion-dollar artificial intelligence (AI) deal with tech giant Microsoft. Nebius Group (NBIS) stock surged 51% to $96.37 after securing the landmark $19.4 billion multi-year AI cloud contract.
As part of the agreement, which runs until 2031, Nebius will supply cloud computing power for Microsoft’s AI workloads. Starting later this year, it will provide GPU infrastructure from a brand-new 300-megawatt data centre located in New Jersey.
The Nebius share rise added more than $7.6 billion to its market cap, surpassing $22.6 billion in value. News of the deal sparked a rally in other rival AI infrastructure stocks across the world. New Jersey-based CoreWeave was up 8% while Australian firm IREN moved almost 14% higher in Tuesday trading.
After separating from Yandex in 2023, Nebius has experienced rapid growth since entering the cloud infrastructure market. This groundbreaking partnership with Microsoft marks the company’s first long-term agreement with a major, recognised technology multinational.
What is the Nebius deal with Microsoft?
The deal with Nebius enables Microsoft to expand its AI services without adding heavy capital expenditure for new data centres. Microsoft will pay $17.4 billion across a five-year period for Nebius capacity. However, there is an option to increase the deal up to $19.4 billion, subject to increased demand.
Market analysts see Nebius as being well positioned to win additional high-profile clients, including other hyperscalers and frontier AI labs. The company continues to extend its data centre capacity with a range of upcoming greenfield projects.
In the previous quarter, Nebius reported revenue of $105.1 million, a figure significantly less than CoreWeave’s $1.21 billion. That said, the Microsoft deal is a notable coup and allows Nebius to expand faster than originally planned through cash flow and new financing options.
How did the Nebius CEO react to the deal?
Arkady Volozh, CEO of Nebius, welcomed the deal, saying the company’s core AI cloud business is “performing exceptionally well.” The firm’s core business currently provides clients with full-stack AI cloud services built on Nvidia computing, providing key software and hardware tools and services to AI developers.
In a statement, Volozh added, “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.”
What does Nebius do?
Nebius is a leading technology company that has developed an AI-native cloud platform designed to handle intensive AI workloads. Listed on the Nasdaq, the Amsterdam-based firm builds full-stack infrastructure to service the expanding global AI industry.
Beyond cloud computing, Nebius has numerous other distinctive brands that operate under its umbrella. Avride develops self-driving technology, while TripleTen focuses on re-skilling workers for new careers in the technology sector. It also holds equity stakes in other businesses including ClickHouse and Toloka.
Previously, the firm has attracted backing from major investors including Nvidia and Accel. Nvidia, the dominant AI chip supplier, recently became the first company in history to reach a $4 trillion market cap.
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