Shares of Dutch artificial intelligence infrastructure company Nebius Group surged by 51% in U.S. premarket trading on Tuesday after announcing a landmark $19.4 billion multi-year deal with Microsoft to power advanced AI workloads.
The partnership cements Nebius’ position as a key global provider of cloud-based GPU infrastructure for training and running artificial intelligence models. The deal, extending through 2031, guarantees Nebius at least $17.4 billion in revenue, with Microsoft reserving the right to purchase additional computing capacity.
🔑 Key Highlights
Nebius stock up 51% in premarket trading, following a 60% surge Monday in extended hours. Microsoft-Nebius deal worth $19.4 billion, fueling global demand for AI cloud power. CoreWeave shares climb 6.6% as investors anticipate stronger AI infrastructure demand. Nvidia remains dominant, forecasting $3–$4 trillion in AI infrastructure spending by decade’s end.
Why This Deal Matters
Nebius, spun out from Russian tech giant Yandex in 2023, has quickly become a major player in AI infrastructure. Backed by Accel and Nvidia, the firm provides high-performance GPUs essential for AI model training.
The deal highlights the explosive demand for computing power required to train large-scale AI models. Rival firm CoreWeave also saw its stock rise, signaling industry-wide investor confidence.
The Bigger Picture in AI
The AI infrastructure boom is accelerating:
- Nvidia recently smashed earnings expectations, projecting over 50% sales growth this quarter.
- Analysts estimate $3–$4 trillion in AI infrastructure investment before 2030.
- Meanwhile, OpenAI’s valuation is nearing $500 billion, and Anthropic recently secured $13 billion at a $183 billion valuation, sparking debates about a possible AI market bubble.
Investor Takeaway
The Microsoft-Nebius mega-deal reinforces that AI infrastructure is the backbone of the next tech revolution. As major tech players race to secure cloud and GPU capacity, Nebius’ surge is a clear sign that investors view AI infrastructure as one of the most valuable markets of the decade.