Nebius NBIS Rockets 50% on Landmark AI Infrastructure Deal with Microsoft

A Defining AI Infrastructure Deal

Nebius NBIS saw its stock price leap approximately 50% pre-market following news of a $17.4-billion AI infrastructure deal with Microsoft, a move expected to add nearly $7.7 billion to its $15.3 billion market cap.

Under the agreement, Nebius will supply GPU-powered AI cloud capacity from its forthcoming Vineland, New Jersey data center to support Microsoft’s expanding AI demand. If Microsoft opts for additional services, the total contract value could grow to $19.4 billion.

Strategic Implications for Nebius NBIS and Microsoft

Nebius NBIS, Going Vertical with GPU AI Services

Nebius specializes in vertically integrated AI cloud services, pairing cutting-edge GPU infrastructure with software, networking, and scheduling tools tailored for AI workloads.

The Microsoft deal will finance Nebius’s data-center expansion through contract-backed debt and cash flow generated by the agreement. This model positions Nebius NBIS as a nimble neocloud competitor able to scale efficiently without traditional capex burdens.

Microsoft’s Strategy,Capacity Without Capex

For Microsoft, the deal underscores a shift toward off-balance-sheet arrangements for AI infrastructure.

Faced with GPU shortages affecting its Azure platform, Microsoft will gain dedicated capacity without heavy capital outlays. Analysts see this arrangement as a blueprint for broader hyperscaler strategies, potentially involving similar partnerships with neocloud providers like Nebius NBIS.

Market Reaction and Sector Momentum

Investor reaction was swift: Nebius shares spiked nearly 50% to $95.70, while other neocloud peers like CoreWeave also saw gains, CoreWeave rose ~6–7% in response.

Analysts suggest this deal not only validates Nebius NBIS’s business model but also signals broader demand for outsourced AI infrastructure among hyperscalers and AI labs.

Background and Growth Trajectory

From Yandex Spin-Off to AI Infrastructure Provider

Nebius NBIS originated from the international operations of Yandex, spun out following a 2024 divestment and renamed in mid-2024.

It rapidly pivoted to focus on AI infrastructure, backed by investors such as Nvidia, and expanded its footprint with GPU-powered data centers, specifically in Finland, Paris, Kansas City, and an under-construction facility in New Jersey.

What Lies Ahead for Nebius NBIS

The Microsoft deal is expected to “accelerate the growth of our AI cloud business in 2026 and beyond,” according to CEO Arkady Volozh.

Analysts anticipate additional contracts with hyperscalers or frontier AI labs may follow as Nebius NBIS builds new greenfield facilities.

What This Means for the AI Cloud Landscape

The deal exemplifies a key shift in how major tech firms approach infrastructure, moving from costly, in-house builds to nimble external partnerships with neocloud providers.

As AI demands stretch traditional cloud capacity, deals like this could become common, reshaping the AI infrastructure market.

In summary, the Nebius NBIS surge following its AI infrastructure deal with Microsoft highlights a turning point: the growing prominence of neocloud providers, the changing infrastructure strategies of hyperscalers, and the continued AI-driven surge in GPU capacity demand.

The core theme: externally financed AI infrastructure deals, like Nebius’s, are redefining how cloud and AI scale.