What To Know
- In a dramatic shift on financial markets, Nebius Group—an AI infrastructure specialist—saw its stock soar following an announcement of a groundbreaking agreement with Microsoft.
- After-hours trading on the Financial Times reported a jump of as much as 68%, while Reuters noted a near 44% gain to reach a record high of about $91.
AI News: Amsterdam-based AI Cloud Player Makes Global Splash
In a dramatic shift on financial markets, Nebius Group—an AI infrastructure specialist—saw its stock soar following an announcement of a groundbreaking agreement with Microsoft. The deal, valued at $17.4 billion over five years, includes an option to expand to $19.4 billion if Microsoft ramps up its demand. With the AI race accelerating worldwide, this AI News report comes at the perfect moment to highlight how rapidly AI infrastructure is becoming a strategic battleground for tech giants.
Nebius stock surges after sealing a multibillion dollar AI infrastructure deal with Microsoft
Image Credit: Nebius
Nebius
Nebius Group is an Amsterdam-based technology company that provides artificial intelligence (AI) infrastructure and services globally. It was formed in 2024 from the non-Russian businesses of the tech giant Yandex and has since focused on the AI market.
Key aspects of Nebius’s business include:
AI cloud infrastructure: The company builds and operates its own data centers with large-scale clusters of high-performance NVIDIA graphics processing units (GPUs), which are critical for training and running AI models.
Services for developers: Nebius offers a full-stack cloud platform and services that provide developers with the compute power, storage, and tools needed for intensive AI workloads.
Large technology firms like Microsoft and Meta Platforms are customers of Nebius, using its technology to train their advanced AI systems.
Share Prices Surge as Investors Cheer
Following the announcement, Nebius shares surged between 40% and 68%, depending on the market—an unmistakable sign of investor excitement. After-hours trading on the Financial Times reported a jump of as much as 68%, while Reuters noted a near 44% gain to reach a record high of about $91.75. MarketWatch, Barron’s, Bloomberg, and other outlets also covered the surge, with Nebius reaching prices ranging from $88 to $98 in intraday trading.
A “Neocloud” Power Move
Nebius positions itself among a new crop of AI-focused cloud infrastructure specialists—sometimes referred to as “neoclouds”—such as CoreWeave. These firms are gaining prominence as hyperscalers like Microsoft grapple with mounting demand and limited internal capacity. The agreement allows Microsoft to bypass massive capital expenditures tied to building its own data centers, opting instead to lease GPU-powered AI compute capacity from Nebius’s planned facility in Vineland, New Jersey.
Growth Catalyst for Nebius
Founded from the remnants of Yandex’s international operations, Nebius has rapidly shifted its focus to AI infrastructure. The Microsoft deal not only delivers substantial revenue visibility, but also de-risks Nebius’s planned capacity expansion and paves the way for future large-scale contracts. CEO Arkady Volozh underscores that the agreement both strengthens Nebius’s core AI business and accelerates its trajectory into 2026 and beyond. To fund its expansion, Nebius plans to leverage contract cash flow and raise debt secured by the Microsoft deal, while exploring other financing options to fuel faster growth.
Ripples Across the AI Infrastructure Sector
The ripple effect extends beyond Nebius. Peer companies like CoreWeave also saw share gains—CoreWeave rose around 5–9%, IREN added about 4.7%, and TeraWulf climbed 3.3% on the back of investor optimism that other “neocloud” firms may score similar mega-deals. This shift signals a broader investor belief that outsourced infrastructure will be a cornerstone of AI scaling strategies for big tech.
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