Microsoft has signed a five-year strategic partnership agreement with Nebius, a company providing critical technologies for artificial intelligence, valued at $17.4 billion. The deal could increase to $19.4 billion if Microsoft’s demands rise.
Following the announcement, Nebius’ shares, currently valued at $15.3 billion, surged by up to 55%, marking one of the company’s largest gains in history.
Under the agreement, Nebius will supply Microsoft with specialized computer hardware (GPUs), considered the “brain” of artificial intelligence. These services are set to commence by the end of this year from a newly built data center in New Jersey.
Arkadi Volozh, CEO of Nebius, stated that the deal will help the company continue its growth beyond 2026. The move highlights Microsoft’s strategy of outsourcing the acquisition of expensive AI hardware to experts, reflecting a new approach in the artificial intelligence sector.
