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Microsoft agreed to pay Nebius $17.4 billion over five years, and could add another $2 billion for additional services or capacity.
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Nebius Group inked a deal with Microsoft worth up to $19.4 billion to provide artificial intelligence infrastructure for the software giant’s new data center in New Jersey.
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Microsoft agreed to pay Nebius $17.4 billion over five years, and could add another $2 billion for additional services or capacity.
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Nebius said this was the first of what it expects to be similar contracts with big AI labs and tech firms.
Shares of Nebius Group (NBIS) soared 50% in early trading Tuesday after the artificial intelligence infrastructure company struck a deal with Microsoft (MSFT) that could be valued as much as $19.4 billion.
Microsoft agreed to pay the Nvidia-backed (NVDA) firm, which completed its split from Russian internet giant Yandex last year, $17.4 billion over five years to provide artificial intelligence infrastructure for a new data center in New Jersey.
Microsoft “may also acquire additional services and/or capacity” for another $2 billion under the agreement.
Founder and CEO Arkady Volozh said this was the first of what Nebius expects will be “significant long-term committed contracts with leading AI labs and big tech companies.”
With Tuesday’s surge, Nebius shares have more than tripled in value since the start of the year. Microsoft shares were up less than 1% in recent trading and have added close to 20% year-to-date.
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