Nebius inks multiyear Microsoft GPU deal worth up to $19.4B

Nebius Group said Monday it has signed a multiyear agreement to supply Microsoft with dedicated GPU infrastructure capacity worth about $17.4 billion over five years, a contract that could rise to roughly $19.4 billion if Microsoft purchases additional services. The Netherlands-based firm said the capacity will be delivered from a new data center in Vineland, New Jersey, beginning later this year, and the announcement sent Nebius shares sharply higher in U.S. trading.

Under the arrangement Nebius will provide Nvidia-powered graphics processing units and associated cloud services in tranches, with leasing slated to begin in 2025, expand through 2026 and continue at least through 2031, the company said in regulatory filings. Nebius said the deal will accelerate growth of its AI cloud business into 2026 and beyond. "The economics of the deal are attractive in their own right, but, significantly, the deal will also help us to accelerate the growth of our AI cloud business even further in 2026 and beyond," Chief Executive Arkady Volozh said.

Market reports showed the stock jumped sharply in reaction, with intraday and after-hours moves reported in a range from roughly 40 percent to...