Microsoft, Nebius strike AI deal

Microsoft has signed a multi-year agreement with Nebius Group, potentially worth $19.4 billion, to bolster its AI cloud computing capabilities. Nebius, which spun out from Yandex, will provide dedicated GPU infrastructure from its new data centre in Vineland, New Jersey.

The deal, valued at approximately $17.4 billion through 2031, involves deploying GPU services in phases during 2025 and 2026. The contract's value could increase if Microsoft procures additional services or capacity. Nebius intends to fund the capital expenditure through cash flow from the agreement and secured debt.

Nebius anticipates that this agreement will accelerate the growth of its AI cloud business in 2026 and beyond. The company is also considering additional financing options to enable faster growth than initially planned.