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Nebius to provide AI infrastructure to Microsoft under $17.4B deal

9 months ago
1 min read

September 9, 2025 | New York, USA (The Arabian Wall Street)Nebius Group has signed a five-year, $17.4 billion deal to supply artificial intelligence (AI) infrastructure to Microsoft, with operations set to begin later this year from its new data center in Vineland, New Jersey.

The agreement will see Nebius deliver dedicated capacity for Microsoft’s AI workloads, a move expected to significantly expand the company’s cloud business. Nebius shares surged 44% in after-hours trading on NASDAQ, reaching $92.50 following the announcement.

Financing and growth outlook

Nebius said the contract’s capital expenditure will be funded through a mix of cash flow generated from the deal and debt secured against the agreement. The company also noted it is exploring additional financing options to accelerate growth beyond its current plans.

Arkady Volozh, CEO of Nebius, stated: “We expect to secure significant long-term committed contracts with leading AI labs and big tech companies.”

AI-native cloud services

Headquartered in Amsterdam, Nebius specializes in AI cloud services powered by Nvidia GPUs. Its AI-native platform integrates a full stack of proprietary hardware and software to deliver compute power, storage, managed services, and tools for developing and running advanced AI models.

The Microsoft deal positions Nebius as a rising global player in AI infrastructure, reinforcing the strategic importance of cloud capacity in powering the next generation of artificial intelligence applications.

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