Nebius Shares Jump After $17.4 Billion AI Deal With Microsoft

Post by : Mumtaaz Qadiri

Nebius Group’s stock price soared nearly 50 percent on Tuesday after the company announced a massive partnership with Microsoft. The deal, worth $17.4 billion over five years, focuses on supplying artificial intelligence (AI) infrastructure to Microsoft. Investors reacted with excitement, pushing the company’s shares to $95.7. The sharp rise showed just how important this agreement is for Nebius, which has already seen its stock more than double this year.

A Huge Deal With Microsoft

The agreement between Nebius and Microsoft is one of the largest AI infrastructure deals in recent times. Under the partnership, Nebius will provide Microsoft with advanced AI data center services. These services are critical for supporting the growing demand for generative AI technologies. Generative AI refers to artificial intelligence systems that can create new content such as text, images, and videos. With businesses worldwide racing to develop more powerful AI tools, Microsoft needs reliable infrastructure providers like Nebius.

Market Reaction To The News

The stock market responded quickly to the announcement. Nebius shares jumped by 49.5 percent in premarket trading, reaching $95.7 per share. If these gains remain steady, Nebius will add around $7.7 billion to its overall market value, which currently stands at $15.3 billion. The rise highlights how much confidence investors have in Nebius’s ability to deliver on this large contract.

Impact On Rival Companies

The news also affected other companies in the AI infrastructure sector. CoreWeave, a competitor of Nebius, saw its own shares rise by 6.3 percent. CoreWeave has already signed similar agreements with major clients, including Microsoft and OpenAI. The growth of Nebius shows that the demand for AI computing power is so high that there is room for multiple players in the market to succeed.

The Growing Demand For AI Data Centers

The world is currently experiencing an unprecedented demand for AI data centers. These centers are special facilities that host powerful computer systems used to train and run AI models. As businesses, researchers, and technology firms increase their use of AI, they require stronger and more reliable infrastructure. This has created a new industry race, with companies like Microsoft, Nebius, and CoreWeave competing to secure the best resources and partnerships.

Analyst Opinions On Nebius

Financial experts believe Nebius is well-positioned to attract even more major customers in the future. Alexander Platt, an analyst at DA Davidson, said: “We continue to believe that Nebius is well set up to bring on other high-profile customers, including other hyperscalers or frontier AI labs, as the company continues to build out their data center capacity with upcoming greenfield opportunities.” His statement highlights the belief that Nebius can expand its business by developing more large-scale data centers.

Microsoft’s Strategy To Meet Demand

Microsoft has repeatedly spoken about the challenge of meeting the growing needs of its clients in the AI sector. The company has noted a shortage of AI cloud infrastructure, meaning that the available computing resources are not enough to meet demand. To solve this issue, Microsoft has been partnering with third-party providers like Nebius and CoreWeave. These partnerships allow Microsoft to scale up quickly and continue supporting clients who depend on its cloud services for AI development.

Microsoft’s Other Deals

Nebius is not the only company working with Microsoft. The tech giant also signed a multibillion-dollar deal with CoreWeave, another AI infrastructure provider. CoreWeave is known for supplying computing resources to OpenAI, the company behind ChatGPT and other advanced AI models. With multiple deals in place, Microsoft is spreading its risk and ensuring that it has enough infrastructure partners to handle future growth.

Nebius’s Core Business

Nebius specializes in providing full-stack AI cloud services. This means that the company offers both the hardware and the software needed by developers to build and run AI models. The foundation of Nebius’s services is based on Nvidia computing, one of the most powerful platforms for AI work. By offering end-to-end solutions, Nebius makes it easier for businesses and researchers to access the tools they need without managing complicated systems on their own.

How The Deal Boosts Nebius’s Future

This deal with Microsoft is more than just a financial win for Nebius. It strengthens the company’s position in the global technology market. By working with one of the biggest names in the industry, Nebius gains credibility and visibility. This could help the company attract other major clients, including large cloud service providers and AI labs. It also ensures that Nebius can continue expanding its data center capacity and stay competitive in a rapidly growing field.

The Bigger Picture: AI Infrastructure Growth

The Nebius-Microsoft deal is part of a larger trend in the technology sector. Around the world, companies are investing heavily in AI infrastructure to meet growing demand. Generative AI models, which require vast amounts of computing power, have become central to industries such as healthcare, education, entertainment, and finance. With each new AI tool developed, the need for more powerful data centers increases. Companies like Nebius are stepping in to fill this critical role.

Investor Confidence And Market Value

Investor confidence in Nebius has grown strongly throughout 2025. The company’s stock has already more than doubled this year, and the new deal pushed its value even higher. If Nebius can continue securing large contracts and expanding its services, it could become one of the leading names in AI infrastructure worldwide. The nearly 50 percent jump in its share price shows how excited investors are about Nebius’s future.

Challenges Ahead For Nebius

While the deal is a big success, Nebius also faces challenges. Building and running large AI data centers requires huge investments in both money and energy. The company will need to carefully manage its resources and ensure that it can deliver reliable services to Microsoft and any new clients it secures. The competition in this sector is also intense, with companies like CoreWeave and other global cloud providers aiming to dominate the market.

What This Means For The Tech Industry

The Nebius-Microsoft deal shows just how important partnerships are in today’s technology industry. As demand for AI continues to rise, no single company can meet all the needs on its own. By working together, companies like Microsoft and Nebius can scale faster and deliver better services to their customers. It also highlights how AI is shaping the future of technology, creating new opportunities and challenges for businesses around the world.

For Nebius, the future looks bright. The partnership with Microsoft could be the start of even bigger opportunities, as more companies seek advanced AI infrastructure. For Microsoft, the deal helps secure the resources needed to stay ahead in the AI race. For the technology sector as a whole, it shows that AI is not just a trend but a long-term shift that will continue to influence how companies build, invest, and innovate.

Nebius Microsoft deal, AI infrastructure growth, Shares rise market