The signing of a $17.4 billion agreement between Nebius and Microsoft is a landmark event in AI infrastructure, opening new horizons for both companies.
Partnership and Scale
Amsterdam-based company Nebius has signed an agreement with Microsoft worth $17.4 billion over the next five years. Under this deal, Nebius will provide Microsoft with GPU infrastructure, much of it based on Nvidia hardware, supported by Nebius's own software and cloud management. The agreement includes an expansion option that could raise the total value to $19.4 billion. A key element of the partnership will be Nebius's new data center in Vineland, New Jersey, scheduled to be operational by late 2025.
Stock Market Reaction
Investor response to this event was immediate. Nebius shares surged more than 47% in after-hours trading, reaching record highs. At one point, the stock jumped nearly 44% to around $91.75. The rise also touched related sectors: companies like Riot Platforms, Hut 8, Cipher Mining, and Bitfarms also saw their stocks climb. This reflects a growing confidence that GPU capacity is becoming as central to the economy as crypto mining once was.
Future of Mining and Risks
The concept of 'mining' is changing: while it used to refer almost exclusively to cryptocurrencies, it increasingly concerns building vast computing power for AI models. Nebius combines hardware, software, and a full-stack AI cloud service, positioning itself as a leader. However, risks remain: building and operating large data centers requires significant capital and faces many challenges, from energy constraints to regulatory hurdles. Analysts view this agreement not only as a win for Nebius but also as an indication of how AI infrastructure will be financed and developed in the coming years.
In conclusion, the $17.4 billion deal between Nebius and Microsoft represents more than just a contract. It signals the growing convergence of AI, cloud services, and even the crypto-mining ecosystem, confirming Nebius's place among the key players of the next technological decade.
