Neocloud infrastructure firm Nebius Group NV (NBIS) drew investors' attention on Thursday after the specifics of its $19.4 billion deal with Microsoft Corp. (MSFT) were reportedly revealed. 

According to a Bloomberg report, the agreement is designed to support Microsoft's internal development of large language models and its upcoming consumer-facing AI assistant.

Both companies had announced the agreement on September 8. Nebius Group's stock traded over 6% higher in Thursday's premarket and was the top trending equity ticker on Stocktwits. Retail sentiment around the stock remained in 'neutral' territory amid 'low' message volume levels. 

The report noted that the deal includes access to more than 100,000 of Nvidia Corp.'s (NVDA) high-performance GB300 chips. To ease capacity constraints in its own data centers, Microsoft is increasingly turning to smaller, AI-focused cloud providers, known as“neoclouds,” to lease advanced infrastructure.

Nebius offers a cloud platform designed specifically for demanding AI tasks. Using its own custom-designed software and hardware, the company provides the computing power, storage, and tools developers need to build, train, and manage AI models and applications.

The Nebius partnership follows similar arrangements with CoreWeave Inc. (CRWV), Nscale, and Lambda, bringing Microsoft's total commitments to these firms to over $33 billion, according to the report. 

On September 15, Nebius announced that it had successfully closed the sale of 10.8 million Class A shares at $92.50 per share. It also finalized a dual-tranche offering of convertible senior notes to institutional investors through a private placement. The gross proceeds of $4.2 billion will be used to fund its agreement with Microsoft. 

Nebius' stock has gained over 317% in 2025 and 478% in the last 12 months. 

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