Nebius Sees Soar After AI Deal with Microsoft
(MENAFN) Shares of Amsterdam-based artificial intelligence (AI) infrastructure firm Nebius surged over 50% on Tuesday, following the announcement of a multi-billion-dollar agreement with Microsoft.
Nebius revealed on Monday that it had struck a deal with Microsoft valued at up to $19.4 billion to supply cloud computing capabilities for AI workloads.
With backers including Nvidia and Accel, the contract will deliver $17.4 billion to Nebius through 2031. The agreement also allows Microsoft the option to acquire additional processing power, potentially raising the total deal value to $19.4 billion.
Investor excitement over the partnership drove Nebius shares up 60% in extended trading on Monday, a rise that continued into Tuesday. Competitor CoreWeave also saw its stock climb 8% following the news.
The Nebius-Microsoft partnership underscores the ongoing strong demand for high-performance processing hardware necessary to develop and operate advanced AI systems.
Nvidia, a leading player in the AI infrastructure sector, reported last month that it expects quarterly sales growth to remain above 50% due to continued demand for its AI chips.
The company surpassed expectations in earnings and revenue for the three months ending in June.
During its earnings call, Nvidia Chief Financial Officer Colette Kress noted that global spending on AI infrastructure could reach between $3 trillion and $4 trillion by the decade’s end.
Nebius revealed on Monday that it had struck a deal with Microsoft valued at up to $19.4 billion to supply cloud computing capabilities for AI workloads.
With backers including Nvidia and Accel, the contract will deliver $17.4 billion to Nebius through 2031. The agreement also allows Microsoft the option to acquire additional processing power, potentially raising the total deal value to $19.4 billion.
Investor excitement over the partnership drove Nebius shares up 60% in extended trading on Monday, a rise that continued into Tuesday. Competitor CoreWeave also saw its stock climb 8% following the news.
The Nebius-Microsoft partnership underscores the ongoing strong demand for high-performance processing hardware necessary to develop and operate advanced AI systems.
Nvidia, a leading player in the AI infrastructure sector, reported last month that it expects quarterly sales growth to remain above 50% due to continued demand for its AI chips.
The company surpassed expectations in earnings and revenue for the three months ending in June.
During its earnings call, Nvidia Chief Financial Officer Colette Kress noted that global spending on AI infrastructure could reach between $3 trillion and $4 trillion by the decade’s end.
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