Nebius Skyrockets on Multi-Billion Microsoft AI Deal

Nebius Group (NASDAQ: NBIS) stunned markets on September 9 after announcing a multi-year AI infrastructure deal with Microsoft worth up to $19.4 billion.

The agreement, set to provide cloud computing power for Microsoft’s growing AI ecosystem, immediately sent Nebius shares soaring nearly 50% in a single session, pushing them to fresh record highs.

For Nebius, a relatively new name in global markets, this partnership is a defining moment. The company, spun out of Yandex just two years ago, has now secured one of the largest long-term contracts in the AI infrastructure space.

For Microsoft, the deal secures critical computing resources as demand for AI services outpaces its in-house capacity.

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Key Takeaways

1. Historic deal: Nebius signed a contract worth $17.4 billion, expandable to $19.4 billion, with Microsoft.

2. Stock surge: Nebius shares jumped nearly 50%, hitting an all-time high.

3. AI demand: The agreement highlights surging global demand for GPUs and AI infrastructure.

Why the Nebius-Microsoft Deal Matters

The partnership commits Nebius to supplying Microsoft with GPU-based cloud infrastructure from a massive new data center under construction in Vineland, New Jersey.

Deliveries are expected to start later this year, providing Microsoft with dedicated clusters for running large-scale AI models.

This deal comes as Microsoft expands its reach in artificial intelligence. Already the largest backer of OpenAI, Microsoft has been rapidly securing external infrastructure through contracts with firms like CoreWeave.

By adding Nebius to its network, Microsoft ensures long-term access to the computing power needed to train and deploy AI models, from generative tools to enterprise services.

For Nebius, the deal delivers stability and global recognition. Founder Arkady Volozh called it the company’s first major contract with a top-tier tech giant, and analysts believe more agreements could follow.

The scale of this contract alone reshapes Nebius’s future, turning it from a niche cloud player into a potential global heavyweight in AI infrastructure.

Investors clearly see the upside. Nebius shares closed at $95.72, up nearly 50% on the day, after hitting an intraday high of $98.68.

Trading volumes also spiked, showing how quickly sentiment shifted once the deal became public.

Read Also: Microsoft Stock Price Prediction in 2025: Buy, Hold, or Bail Before It Explodes?

Market Reaction and Industry Impact

The announcement rippled across the broader market. Shares of CoreWeave, another AI infrastructure provider with Microsoft ties, gained more than 7%.

DigitalOcean also saw a modest bump, while Nvidia, the world’s leading supplier of GPUs, remains at the center of the AI boom.

Analysts estimate that AI infrastructure spending could reach between $3 trillion and $4 trillion by the end of the decade.

With that backdrop, deals like the one between Nebius and Microsoft show how critical access to GPU clusters has become.

Microsoft, despite its immense resources, is finding that outsourcing is the only way to keep pace with demand.

For Nebius, investor enthusiasm is about more than one contract. This deal validates its business model and opens doors to additional partnerships with hyperscalers and leading AI labs.

Its growth strategy extends beyond cloud services, with investments in companies like ClickHouse, Avride, and TripleTen, but its AI infrastructure business is now clearly the centerpiece.

Still, the rally raises questions about sustainability. The speed of Nebius’s stock surge highlights how sensitive markets are to AI-related news.

Some analysts warn of potential overvaluation, echoing concerns raised about whether the AI market is becoming overheated. Yet, for now, investor sentiment is overwhelmingly positive, and Nebius is firmly in the spotlight.

Read Also: WORLD3 Partners with Microsoft to Bring Advanced AI Agents to Web3

What This Means for Investors

For investors, the Nebius-Microsoft deal is a double-edged sword. On one hand, it gives Nebius years of revenue visibility and a chance to cement its place among the world’s top AI infrastructure providers.

On the other, it raises expectations significantly, meaning execution will be closely watched.

The agreement also reflects a broader theme: the AI gold rush is no longer just about software like ChatGPT but also about the hardware and infrastructure powering it.

Companies that can provide reliable access to GPUs are becoming indispensable, and Nebius now finds itself in that elite group.

Whether Nebius can maintain momentum depends on its ability to deliver consistently and expand its partnerships beyond Microsoft.

The demand is certainly there, AI workloads are growing exponentially, but competition is also fierce.

Rivals like CoreWeave and established players like Nvidia and Amazon Web Services remain formidable.

For those weighing investments, the surge in Nebius stock is a reminder of both the promise and the volatility of the AI sector.

The deal cements Nebius as a serious contender, but investors should keep an eye on whether its performance keeps pace with its soaring valuation.

Read Also: MSN Stock: Market Performance and Investor Insights

Conclusion

Nebius’s $19.4 billion deal with Microsoft marks one of the most significant partnerships in the AI infrastructure sector to date.

It positions Nebius as a critical supplier in the global AI boom, transforms its market profile, and gives Microsoft the computing resources it urgently needs.

The immediate stock surge shows how strongly investors are betting on the AI future, but it also raises expectations for Nebius to deliver flawlessly on this massive contract.

Still, the deal confirms that demand for AI infrastructure is not slowing down, it is only accelerating.

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FAQ

What is the Nebius-Microsoft deal worth?

The deal is valued at $17.4 billion over five years, expandable to $19.4 billion if demand increases.

Why did Nebius stock surge so much?

Investors responded to the scale and long-term nature of the Microsoft deal, pushing Nebius shares nearly 50% higher.

What does Nebius provide Microsoft in this deal?

Nebius will supply dedicated GPU cloud infrastructure to support Microsoft’s AI workloads.

How does this affect the broader AI market?

It underscores strong demand for AI infrastructure, benefiting not only Nebius but also rivals like CoreWeave and chipmakers like Nvidia.

Is Nebius a safe long-term investment?

The deal improves its outlook, but as with all AI stocks, volatility remains high, and future performance will depend on execution.

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