Nebius Group will provide Microsoft with GPU infrastructure capacity, in a deal worth $19.4 billion, over a five-year term, CNBC reported.
The Amsterdam-based company, a supplier of Nvidia-powered infrastructure for training artificial intelligence models, has signed an agreement to provide Microsoft with cloud computing resources.
Under the deal, Nebius will supply services via a data center located in New Jersey, with deployments scheduled in multiple phases through 2025. According to a filing with the U.S. Securities and Exchange Commission, the base contract runs through 2031, with a guaranteed value of $17.4 billion and an additional $2 billion option available to Microsoft.
Formerly known as Yandex NV, Nebius rebranded last year after divesting its Russian-language search engine and other domestic operations to Russian investors. Now positioning itself as a global infrastructure provider, Nebius is targeting rapid expansion in the U.S. cloud market, particularly for AI workloads.
To support this growth, the company recently opened offices in San Francisco, Dallas, and New York, noting in a blog post that its US presence is key to ‘supporting innovative American AI businesses.’
The deal highlights Microsoft’s ongoing efforts to address a growing shortage of AI-ready cloud capacity, driven in part by surging demand from OpenAI, a major customer of Microsoft’s Azure platform. As OpenAI continues to scale ChatGPT and other services, it has also begun working with Google to secure additional compute power.
In parallel, Microsoft has expanded its partnerships with alternative infrastructure providers like CoreWeave, which also signed a multi-billion-dollar deal directly with OpenAI. CoreWeave’s stock rose about 5% in extended trading following the Nebius announcement, while Microsoft shares remained relatively flat.
Nebius indicated in its statement that it is exploring new financing options to accelerate its growth strategy in response to rising demand. Before Monday’s after-hours surge, Nebius stock had already more than doubled in value year-to-date, closing the regular session with a market capitalization of just over $15 billion.
