Nebius Leaps After $17.4 Billion AI Computing Deal with Microsoft

Nebius Group shares surged 41% to $90.30 on Tuesday as investors cheered its $17.4-billion agreement to supply AI infrastructure to Microsoft over five years, Reuters reported.

Nebius' stock has more than doubled this year. (Photo: Nebius Group)

The deal, which could expand to $19.4 billion if Microsoft increases demand, underscores soaring global needs for high-performance AI data centers amid the race to advance generative AI technologies.

Nebius stock, which has more than doubled this year, gained 41.3% in early trading, while rival CoreWeave rose 8.1%.

Analysts said the contract puts Nebius in a strong position to secure additional marquee customers, including other hyperscalers and frontier AI labs, as it expands its data center footprint through new projects.

“This deal provides unprecedented clarity on the company’s long-term revenue potential and significantly de-risks its planned capacity buildout,” said Hamed Khorsand, analyst at BWS Financial. Microsoft, which has repeatedly flagged a shortage of AI cloud infrastructure due to surging client demand, has increasingly turned to third-party providers to fill the gap.