Nebius (NBIS) Stock Jumps 16% on $2 Billion Nvidia AI Infrastructure Deal

TLDR

• Nvidia announced a $2 billion investment in Nebius Group, sending NBIS stock up 16.14% on Wednesday.
• The deal targets deployment of over 5 gigawatts of computing capacity by end of 2030.
• Nebius will get early access to Nvidia’s latest computing technologies and will co-design large AI data centers.
• Nebius already holds $20.4 billion in contracts from Microsoft and Meta, with ARR projected at $7B–$9B by year end.
• Rival neoclouds CoreWeave (CRWV) and IREN rose 9.4% and 10% respectively on the news.

Nebius Group stock climbed 16% on Wednesday after Nvidia said it would invest $2 billion in the Amsterdam-based AI cloud company. The deal is part of a strategic partnership to expand AI computing infrastructure at scale.

Nebius Group N.V., NBIS

Nvidia said the investment reflects confidence in Nebius’s engineering capabilities. The two companies will work together to design and deploy large AI data centers, and Nebius will gain early access to Nvidia’s newest computing technologies.

The partnership also covers collaboration on software and systems to manage large AI computing clusters. Nebius said the deal will help grow computing capacity across its global platform.

Nebius is a neocloud — a cloud provider built specifically for AI workloads, rather than a legacy hyperscaler. That lean, purpose-built model has been attracting attention from some very large customers.

Microsoft agreed to purchase $17.4 billion of capacity from Nebius over five years. Meta followed with a $3 billion contract. Those are not startup numbers.

The company expects to reach between 800 megawatts and one gigawatt of connected power by the end of 2026. It has already secured more than three gigawatts of contracted power.

Annual recurring revenue is projected to land between $7 billion and $9 billion by year end. For a company still largely under the radar, that would represent a major step up in scale.

Earlier this month, Nebius received approval to build a 1.2-gigawatt data center campus in Independence, Missouri. The project is expected to create around 1,200 construction jobs and 130 permanent positions.

The Missouri project also includes more than $650 million in payments in lieu of taxes over 20 years. That is a long-term commitment on both sides.

Nvidia CEO Jensen Huang described Nebius as building an AI cloud designed for the agentic era, fully integrated from silicon to software. That kind of endorsement from Huang carries weight in this sector.

Sector Reaction

The Nebius deal moved more than just NBIS. CoreWeave (CRWV) gained 9.4% on Wednesday in sympathy. Nvidia is already a major CoreWeave investor and announced a further $2 billion purchase in CoreWeave in January.

Smaller peer IREN climbed 10% on the day. The market read the Nebius deal as a vote of confidence in the neocloud category broadly.

This is the third $2 billion infrastructure investment Nvidia has made recently. Last week, the chip maker agreed to invest $2 billion each in Lumentum and Coherent to accelerate optical technologies used in AI data centers.

Nvidia’s Wider Bets

The Nebius announcement also lands alongside Oracle disclosing it has secured more than 10 gigawatts of power and data center capacity coming online over the next three years.

Oracle’s build-out is backed by a roughly $300 billion cloud contract with OpenAI. Nvidia separately invested $30 billion in OpenAI.

Nebius has a market cap of just over $24 billion as of Tuesday’s close. The $2 billion Nvidia investment represents roughly 8% of that figure.

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