- Nebius supplies AI infrastructure to Microsoft between NOW and 2031
- New Jersey Data Center will be the first project during the partnership
- The trade is worth $ 17.4 billion – could reach $ 19.4 billion
Former Yandex Spinoff Nebius, now headquartered in Amsterdam, has signed a multi-year agreement with Microsoft to supply AI infrastructure to the tech giant.
The contract, which is valued at $ 17.4 billion until 2031, begins later in the year with the construction of a new data center in Vineland, New Jersey.
The message was supplemented with a 6-K filing, which revealed that the agreement could reach $ 19.4 billion if Microsoft decides to acquire additional services and/or capacity.
Microsoft beats a deal on several trillion dollars with Nebius
Nebius founder and CEO Arkady Volozh said the Microsoft Agreement only marks the first of a number of “significant long-term committed contracts with leading AI-laboratories and large tech companies.”
Volozh also noted that Nebius expects the deal to help “speed up the growth of [its] AI Cloud business even further in 2026 and above, “notes that the company” is [already] Performing unusually well. “
The back of this was the 50% increase in shares two days after the announcement after an extended 60% extended trade increase on the announcement day. Nebius shares are currently appreciated at $ 95.72, up from $ 64.19 before the message.
Nebius published a 625% year-over-year and 106% quarter-to-quarter increase in revenue to $ 105.1 million in the 2nd quarter, which attributed growth to great demand for AI-Infrastructure such as calculation, software and services.
This is up from $ 55.3 million in the Q1 income.
Its Microsoft Deal will partly be funded by cash flow from the agreement and partly with short -term loans that have seen “improved” terms thanks to Microsoft’s solid support.
Microsoft has not publicly commented on the agreement.
In addition to Microsoft, Nebius has already received investments from other tech managers, including Nvidia and Acccel.
Looking ahead, Nvidia CFO Colette Kress AI infrastructure expects to reach $ 3-4 billion by 2030.
Techradar Pro has reached Microsoft for his perspective on the agreement. Any update will be published here.
