Nebius Scores $19.4B Deal with Microsoft for AI Infrastructure
Nebius, a leading neocloud company specializing in AI cloud infrastructure, has inked a major deal with Microsoft 365. The agreement, valued between $17.4 billion and $19.4 billion, will see Nebius provide dedicated GPU infrastructure capacity at its new data center in Vineland, New Jersey, over the next five years.
Headquartered in Amsterdam, Nebius was founded in 1989 as a holding for the Russian search engine Yandex. However, following the Ukraine war and related sanctions, the company rebranded and split off from Yandex's Russian operations in 2024. Since then, Nebius has focused on international cloud and AI-related businesses, recently securing this significant contract with Microsoft 365.
The deal allows Microsoft 365 to improve its AI infrastructure faster with lower upfront costs and reduced financial risk. Nebius, backed by AI powerhouse Nvidia, offers priority access to its newest, high-performance GPUs. This benefits Nvidia too, with increased demand for its GPUs and potential financial gains from its shares in Nebius. Nebius' annualized run-rate revenue (ARR) stands at approximately $1 billion, focusing solely on AI and machine learning workloads. This deal is part of a growing trend in the industry, with more neocloud providers partnering with major companies.
The agreement between Nebius and Microsoft 365, valued at up to $19.4 billion, underscores the growing importance of AI infrastructure in the tech industry. Both companies stand to gain from this partnership, with Microsoft 365 enhancing its AI capabilities and Nebius expanding its global footprint in the AI market.
Read also:
- Eric Dane Diagnosed with ALS, Advocates for ACT for ALS
- Deepwater Horizon Oil Spill: BP Faces Record-Breaking Settlement - Dubbed 'Largest Environmental Fine Ever Imposed'
- Meta Unveils Ray-Ban AR Display Sunglasses; TikTok Agrees to $200 Million Deal
- Historic downtown temples to receive restoration funds totaling over 25 million pesos
