Nvidia Invests $2 Billion in Nebius Amid Rising AI Demand

Nvidia is investing $2 billion in cloud-computing firm Nebius, enabling the company to deploy more than five gigawatts of computing capacity by the end of 2030.

Nebius expects to reach between 800 megawatts and one gigawatt of connected power by the end of 2026. (Photo: Nebius Facebook) 

Nvidia CEO Jensen Huang said the investment reflects efforts to meet surging global demand for artificial intelligence (AI), Adam Clark and Janet H. Cho reported for Barron’s Daily.

Nebius is one of several smaller cloud providers known as “neoclouds,” which supply computing capacity for AI workloads.

The company had a market value of just over $24 billion as of Tuesday’s close.

The market is still digesting news from Oracle that it has secured more than 10 gigawatts of power and data-center capacity expected to come online over the next three years.

Oracle also holds a roughly $300-billion cloud-computing contract with OpenAI.

Amsterdam-based Nebius—spun out from the international operations of Russian technology group Yandex—secured a major deal in September when Microsoft agreed to buy $17.4 billion of capacity over five years.

Meta Platforms later followed with its own $3-billion contract.

Nebius expects to reach between 800 megawatts and one gigawatt of connected power by the end of 2026, with more than three gigawatts of contracted power. The company projects annual recurring revenue of $7 billion to $9 billion by year-end.