Microsoft Lands Major Deal — Nebius Secures $17.4 Billion Compute Contract, Shares Surge 60%

TradingKey - On Monday (U.S. Eastern Time), Nebius (NBIS.US) announced a strategic agreement with Microsoft valued at up to $19.4 billion. Following the announcement, Nebius shares surged over 60% in after-hours trading.

Source: NEBIUS after-hours chart, Google Finance

The deal includes a base contract worth $17.4 billion, with Microsoft holding an option to purchase an additional $2 billion in services, bringing the total potential value to nearly $19.4 billion, with performance obligations extending through 2031. The agreement marks a major step by Microsoft to address its ongoing AI computing capacity constraints.

Under the terms, Nebius will provide dedicated GPU-powered cloud computing capacity to Microsoft from its Vineland data center campus in New Jersey. The services will be rolled out in phases, with initial capacity expected to come online by the end of this year and further expansion into next year.

Microsoft’s CFO previously acknowledged that the company “will continue to face capacity constraints,” making this “off-premise” compute sourcing a critical strategy to bridge the supply-demand gap in AI infrastructure.

For Nebius, the deal represents a major validation of its strategic pivot and a strong endorsement of its position in the global AI cloud market. Founder and CEO Arkady Volozh stated that the agreement not only delivers significant economic value but will also accelerate the company’s AI cloud expansion plans beyond 2026.

Market analysts note that the deal underscores how AI leaders are continuing to invest heavily in infrastructure amid fierce competition. Meanwhile, specialized AI cloud providers like Nebius are emerging as key partners in the tech giants’ supply chain, leveraging early-mover advantages to secure long-term, high-value contracts.