Reports indicate that Nebius Group supplies Microsoft with GPU infrastructure capabilities in a contract valued at $17.4 billion, spanning five years, causing its stock to surge by more than 47 percent after market close.

The agreement highlights the increasing need for advanced AI computing, as businesses make significant investments to enhance their AI systems.

Under the agreement, Microsoft might also obtain extra services capacity, raising the total contract value to approximately $19.4 billion.

Nebius primarily focuses on offering Nvidia graphic processing units and AI cloud services. Nebius provides AI developers with the computing power, storage solutions, managed services, and tools essential for constructing, optimizing, and operating their AI models, utilizing its cloud software framework and proprietary hardware.

Nebius will grant Microsoft access to exclusive GPU infrastructure resources from its upcoming data center in Vineland, New Jersey, beginning later this year.

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"The economics of the deal are attractive in their own right, but, significantly, the deal will also help us to accelerate the growth of our AI cloud business even further in 2026 and beyond," Nebius CEO Arkady Volozh says.

Microsoft is the biggest client of CoreWeave - a rival of Nebius - which earlier this year refuted media claims stating it had experienced contract terminations from the hyperscaler.

Nebius Group, based in Amsterdam, was formed from an agreement to divide the assets of Russian technology leader Yandex.

Nebius is a tech firm developing comprehensive infrastructure to support the rapidly expanding global AI sector. Nebius, based in Amsterdam and traded on Nasdaq, has an international presence with R&D centers in Europe, North America, and Israel.

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Nebius’s cloud platform, designed for AI, is tailored for demanding AI tasks. Nebius provides AI developers with a comprehensive suite of uniquely crafted and optimized proprietary software and hardware developed internally, offering the computing power, storage, managed services, and tools required to create, optimize, and deploy their models and applications.