Nebius makes 17.4 billion dollar AI infrastructure agreement with Microsoft causing stock prices to rise

Major Partnership Between Nebius and Microsoft

Nebius Group N.V. has entered a multi-year agreement with Microsoft to deliver dedicated AI infrastructure capacity for the tech giant, marking one of the largest deals in the industry’s history. According to official statements, Nebius will supply AI infrastructure from a new data center in Vineland, New Jersey, beginning later in 2025[1][3].

Key Details of the Agreement

  • Microsoft will pay Nebius $17.4 billion to $19.4 billion over the next six years for third-party AI infrastructure capacity[2][3].
  • The contract helps Microsoft meet rapidly growing demand for AI workloads and platforms such as ChatGPT.
  • Nebius expects to use proceeds from the deal, combined with debt secured against the contract, to finance capital expenditures for the new data center project[1].
  • The agreement also strengthens Nebius’s prospects for accelerated growth in its core AI cloud business throughout 2026 and beyond[1].

Strategic Importance for Microsoft

Unable to fully meet its own infrastructure needs, Microsoft’s decision to partner with Nebius reflects the broader industry trend of investing in external data center capacity to support large-scale AI tools and workloads[2]. This contract also signals Microsoft’s commitment to providing reliable and scalable AI services to both enterprises and consumers.

Financial and Growth Implications for Nebius

  • Capital required for the new data center is expected to be covered by contract cash flows and debt, with the possibility of additional financing options to enable faster growth than originally planned[1].
  • The company’s leadership sees this agreement as the first of many long-term committed contracts with major technology laboratories and corporations[1].
  • Nebius will update stakeholders on further financing strategies as plans progress.

Industry Outlook

This landmark deal is likely to further accelerate the expansion of Nebius’s infrastructure and consolidate Microsoft’s role as a leader in the AI sector. Both companies anticipate that the partnership will foster significant innovation and investment in advanced AI cloud platforms in the coming years.

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