Nebius Group shares soared more than 40% Tuesday after the Amsterdam-based artificial intelligence infrastructure company unveiled a multi-year agreement with Microsoft valued at up to $19.4 billion. The deal highlights the intensifying demand for high-performance computing to power generative AI systems.
The agreement secures $17.4 billion in commitments through 2031, with the potential to expand if Microsoft increases usage. Nebius will provide cloud infrastructure and GPU capacity for Microsoft's AI workloads, beginning with deployments from its new Vineland, New Jersey data center later this year.
The stock, which has more than doubled in 2025, jumped 41% to $90.30 in early trading Tuesday, extending Monday's after-hours surge of nearly 60%. Shares of CoreWeave, a rival AI infrastructure provider that also has contracts with Microsoft and OpenAI, gained more than 8% on the news.
"This deal provides unprecedented clarity on the company's long-term revenue potential and significantly de-risks its planned capacity buildout," said Hamed Khorsand, analyst at BWS Financial. He added that Nebius is now positioned to pursue additional large-scale clients, including hyperscalers and frontier AI labs.
The agreement underscores Microsoft's continued push to secure GPU resources as demand for AI infrastructure outpaces supply. The tech giant has flagged capacity shortages in recent quarters as enterprises and research groups race to develop advanced AI models. Microsoft already maintains a multibillion-dollar partnership with CoreWeave for similar services.
Nebius, founded in 2023 following a spinoff from Russian internet company Yandex, has attracted investment from Nvidia and venture firm Accel. Its business model combines dedicated GPU infrastructure with full-stack cloud services for AI developers, offering both hardware and software tools for building and deploying machine learning models.
