Shares of Nebius Group (NBI.O) skyrocketed nearly 55% on Tuesday to $99.20 after the company announced a massive $17.4 billion deal to supply Microsoft (MSFT.O) with AI infrastructure over the next five years.
The agreement could expand to $19.4 billion if Microsoft’s demand continues to rise, highlighting the race for high-performance AI data centers as generative artificial intelligence takes off globally.
Nebius stock, which has already more than doubled this year, surged in upmarket trading. Rival Core Weave’s shares also climbed 6.6%. If the rally holds, Nebius is set to add around $7.7 billion to its current $15.3 billion market value.
Analyst Alexander Platt of D.A. Davidson said Nebius is well-positioned to win more major clients, including hyperscalers and frontier AI labs, as it rapidly expands its data center capacity to capture new opportunities.
Microsoft has repeatedly flagged shortages in AI cloud infrastructure and is turning to third-party providers to fill the gap. The tech giant already has similar multi billion-dollar deals with Co Reweave and a major arrangement with Open AI for AI computing resources.
Founded from a spin-off of Russian tech firm Yandex, Amsterdam-based Nebulous plans to start delivering dedicated GPU infrastructure to Microsoft later this year from its new data centre in Vine land, New Jersey.
Nebius’s core business centres on providing full-stack AI cloud services built on NVIDIA (NVDA.O) technology, offering developers the hardware, software, and tools they need to train and run AI models.
