Nebius Strikes Landmark $19.4B Microsoft Deal, Positioning as Major Player in AI Infrastructure

Breaking Ground in AI Infrastructure

In a groundbreaking development, Nebius Group NV has secured a multiyear deal worth up to $19.4 billion to provide AI cloud computing power to Microsoft Corp. The agreement, which extends through 2031, has attracted attention from major investors including Nvidia Corp. and Accel Partners.

The company will deliver computing resources through its data center in New Jersey, marking a significant milestone as their first long-term contract with a major tech company. Nebius executives have indicated that similar deals are likely to follow.

Company Background and Evolution

Headquartered in the Netherlands, Nebius operates as an international company with engineering hubs in Finland, Serbia, and Israel. The company boasts a skilled workforce of over 500 professionals with extensive experience in developing sophisticated cloud and ML solutions.

The company’s mission centers on building purpose-built infrastructure for AI, including vast compute resources, optimized software and hardware, and collaborative ecosystems. Their full-stack cloud platform combines hyperscaler capabilities with supercomputer performance, with GPU clusters deployed across Europe and the US.

Recent Developments and Market Impact

The announcement has had a dramatic effect on Nebius’s market value, with shares soaring more than 60% in extended trading. The deal comes at a crucial time when Microsoft is actively seeking additional third-party providers to address the growing demand for AI-capable cloud infrastructure, particularly as OpenAI, one of Microsoft’s major Azure cloud customers, seeks to expand its capacity for ChatGPT users.

Nebius serves a diverse and growing ecosystem of AI innovators, from startups to research institutes and enterprises, across various sectors including healthcare, life sciences, robotics, finance, and entertainment, as well as national AI programs.

Future Outlook

Looking ahead, Nebius has provided guidance indicating expected annualized run-rate revenue (ARR) between USD 750 million to USD 1.0 billion by the end of 2025, demonstrating the company’s ambitious growth trajectory in the rapidly evolving AI infrastructure market.