Nebius Group Secures $17.4B Microsoft Deal to Power Next-Gen AI Infrastructure
Nebius Group, an Amsterdam-based AI infrastructure provider, is making waves in the tech world after securing a massive $17.4 billion deal with Microsoft.
This five-year agreement, announced on September 9, 2025, sent Nebius’ stock soaring over 50% in a single day, with shares spiking to $91.75 and the company’s year-to-date gains reaching an impressive 227%.
The deal, which could expand to $19.4 billion if Microsoft opts for additional GPU capacity, underscores the skyrocketing demand for high-performance computing to power generative AI systems.
Nebius specializes in delivering full-stack AI cloud services, leveraging Nvidia GPUs, proprietary cloud software, and in-house hardware to provide developers with the tools needed to build, tune, and deploy advanced AI models.
The company will supply Microsoft with dedicated GPU infrastructure from its new data center in Vineland, New Jersey, with deployments starting later in 2025 and continuing through 2026.
This partnership positions Nebius as a key player in the AI infrastructure race, competing with rivals like CoreWeave, which also serves Microsoft and OpenAI.
While the deal itself involves no direct funding, it significantly bolsters Nebius’ financial outlook. The company plans to finance its capital expenditures using cash flow from the contract and debt issuance, enhanced by Microsoft’s credit quality.
CEO Arkady Volozh emphasized that the deal not only secures attractive economics but also accelerates Nebius’ AI cloud business growth into 2026 and beyond.
With a market cap of just over $15 billion before the announcement, Nebius is now well-positioned to attract additional high-profile clients, including hyperscalers and frontier AI labs.
Looking ahead, Nebius aims to expand its U.S. presence, having recently opened offices in San Francisco, Dallas, and New York.
The company, which emerged from a 2023 spinoff of Yandex’s assets, is exploring further financing options to fuel its ambitious growth plans.
Analysts, like Hamed Khorsand of BWS Financial, see the Microsoft contract as a game-changer, de-risking Nebius’ capacity buildout and signaling its potential to dominate the AI infrastructure space.
FAQ
What is Nebius Group?
Nebius Group is an Amsterdam-based AI infrastructure company providing Nvidia GPU-powered cloud services and tools for AI developers.
What does the Microsoft-Nebius deal involve?
The $17.4 billion, five-year deal involves Nebius supplying Microsoft with GPU infrastructure from its Vineland, New Jersey data center, with potential expansion to $19.4 billion.
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