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Nebius Group shares surged on Tuesday after the Amsterdam-based artificial intelligence infrastructure firm announced a landmark partnership with Microsoft. The multi-year agreement, valued at $19.4 billion, will see Nebius supply cloud computing power to support Microsoft's rapidly expanding AI operations.
The deal, which guarantees $17.4 billion in revenue through 2031, will focus on providing graphics processing units (GPUs) — essential for training and running advanced AI models. Microsoft has also retained the option to purchase additional computing capacity, potentially increasing the total contract value.
Founded as a spin-off from Russian tech giant Yandex in 2023, Nebius specializes in AI-focused cloud services, including computing, storage, and management tools for developers. Its GPUs are central to powering next-generation AI applications. The company's recent opening of a massive data center in Vineland, New Jersey, will play a key role in fulfilling Microsoft's infrastructure needs, with operations expected to ramp up later this year.
Nebius' stock soared 60% in after-hours trading on Monday and continued its upward momentum Tuesday, closing up 40%. The announcement also boosted shares of rival AI infrastructure company CoreWeave, which gained 8% amid heightened investor enthusiasm for the sector.
"The economics of this agreement are compelling, and it positions Nebius to accelerate growth in 2026 and beyond," said Arkady Volozh, Nebius CEO, emphasizing the transformative potential of the partnership.
This move underscores the intense demand for high-performance AI compute as tech giants compete to lead the artificial intelligence revolution. Industry heavyweight Nvidia recently reported stellar quarterly earnings and projected that global spending on AI infrastructure could reach $3–$4 trillion by 2030, signaling long-term growth in the sector.
However, some analysts have voiced caution. Concerns over a potential AI market bubble were reignited last month when OpenAI CEO Sam Altman and others warned that valuations might be overheating. OpenAI is reportedly seeking a staggering $500 billion valuation, while competitor Anthropic recently secured $13 billion at a $183 billion valuation.
For now, Nebius' historic deal with Microsoft highlights the continued rush to build powerful computing systems, cementing its role as a key player in shaping the future of artificial intelligence. Investors appear confident that the AI boom is far from over.
