Nebius Group, an Amsterdam-based AI infrastructure company, has signed a landmark agreement with Microsoft worth $17.4 billion over the next five years. Under the deal, Nebius will provide Microsoft with large-scale GPU infrastructure. Most of it will run on Nvidia hardware, supported by Nebius’s own software and cloud management systems. The contract includes an expansion option that could push the total value up to $19.4 billion, making it one of the largest agreements in the AI era.
Vineland Data Center as Cornerstone
The partnership will rely heavily on Nebius’s new data center in Vineland, New Jersey. The facility is scheduled to come online in late 2025 and will anchor the infrastructure promised in the deal. For Nebius, the agreement offers both stable revenue and a platform for growth. To finance expansion, the company announced a $3 billion plan. It includes $2 billion from convertible notes and $1 billion from a public share offering. The funds will go toward new hardware, energy and land for future data centers, and the global expansion of Nebius’s footprint.
Stock Market Reaction
Investor response was immediate. Nebius shares surged more than 47% in after-hours trading, reaching record highs. At one point, the stock jumped nearly 44% to about $91.75. Confidence also spread to related industries. Companies like Riot Platforms, Hut 8, Cipher Mining, and Bitfarms saw their stocks climb. This rise reflects a growing belief that GPU capacity is becoming as central to the economy as crypto mining once was. Interestingly, Bitcoin slipped slightly, showing that attention has shifted away from digital coins and toward the infrastructure behind AI and blockchain.
The New Meaning of Mining
The idea of “mining” is changing. In the past, mining referred almost exclusively to cryptocurrencies. Today, it increasingly describes the race to build vast computing power for AI models. Nebius combines hardware, software, and a full-stack AI cloud service, positioning itself as a leader. For Microsoft, the deal secures priority access to GPUs at a time when demand is outstripping supply. For investors, it signals that infrastructure providers—rather than token-based projects—may drive the next wave of growth.
Risks and Outlook
Despite the optimism, risks persist. Building and operating large data centers requires huge capital and carries many challenges, from energy constraints to regulatory hurdles. Delays or cost overruns could cool the current excitement. Even so, the scale and visibility of this agreement mark a turning point. Analysts see it not only as a win for Nebius but also as a sign of how AI infrastructure will be financed and developed in the coming years.
In conclusion, the $17.4 billion deal between Nebius and Microsoft represents more than just a contract. It signals the growing convergence of AI, cloud services, and even the crypto-mining ecosystem, all tied together by the rising value of computing power. If successfully executed, this agreement could reshape the competitive landscape for both AI and digital infrastructure while confirming Nebius’s place among the key players of the next technological decade.
