Nebius Group and Microsoft have joined hands in a deal worth $17.4 billion , aiming to deliver high performance AI computing infrastructure.
According to the published statement, Nebius, which is based in Amsterdam, will provide cloud computing resources to Microsoft for a five-year term by using a data center in New Jersey in order to reduce demand shortages.
The highly-anticipated collaboration came on the heels of surging demand for AI centres and infrastructure in the midst of rapid advancement in generative AI technologies.
After the multi-billion dollar deal, the shares of Nebius rose nearly 50 percent to $95.7 on Tuesday.
In the case of consistent profit margins, Nebius will add around $7.7 billion to its $15.3 billion market shares.
Alexander Platt, analyst at DA Davidson said, "We continue to believe that Nebius is well set up to bring on other high-profile customers, including other hyperscalers or frontier AI labs, as the company continues to build out their data center capacity with upcoming greenfield opportunities.”
For months, Microsoft has been looking for third parties as investors to bridge infrastructural shortage due to growing AI demands in the tech-driven era.
Earlier, Microsoft has made a deal with CoreWeave for acquiring additional AI computing power for high performance.
Nebius, founded in 1989, aims to provide AI cloud services, software, and hardware tools built on Nvidia computing.
