TLDR
- Nebius shares jumped 51% in premarket trading after announcing a $19.4 billion multi-year deal with Microsoft for AI infrastructure
- The deal is worth $17.4 billion through 2031 and provides cloud computing power for AI workloads
- Nebius was spun out from Russian internet giant Yandex in 2023 and provides GPUs for training AI models
- The news also boosted rival AI infrastructure firm CoreWeave by 6.6% in premarket trading
- Markets have shown concern about AI bubble risks after comments from OpenAI CEO Sam Altman and other analysts
Nebius Group shares exploded higher in premarket trading Tuesday morning. The stock jumped 51% at 10:39 a.m. London time following news of a massive Microsoft partnership.
The Amsterdam-based AI infrastructure company announced a multi-year deal with Microsoft worth $19.4 billion. This agreement will see Nebius provide cloud computing power specifically for AI workloads.
Nebius operates as a specialized provider of graphics processing units for AI model training. The company was spun out from Russian internet giant Yandex in 2023.
NEBIUS $NBIS REPORTS $17.4 BILLION DOLLAR PACT THROUGH 2031 WITH MICROSOFT $MSFT – Bloomberg
We have been talking about this name a bunch on the spaces … free alpha given out every day @StocksOnSpaces pic.twitter.com/W7PJHSk139
— Evan (@StockMKTNewz) September 8, 2025
The Microsoft deal carries a value of $17.4 billion through 2031 for Nebius. Microsoft also has options to acquire additional computing capacity under the arrangement.
Trading activity showed strong investor enthusiasm for the partnership. Nebius shares had already climbed 60% in Monday’s extended trading session before Tuesday’s continued surge.
The deal’s impact extended beyond Nebius itself. Rival AI infrastructure firm CoreWeave saw its shares rise 6.6% in premarket trading on the news.
Strong Demand for AI Infrastructure
The Microsoft-Nebius partnership reflects ongoing strong demand for AI computing equipment. Companies continue seeking powerful hardware needed to train and run advanced AI systems.
Nvidia, the dominant player in AI infrastructure, recently reported better-than-expected earnings and revenue. The company’s results covered the three months through June.
Nvidia projected sales growth above 50% for the current quarter. This forecast came from continued demand for the company’s AI chips.
Chief Financial Officer Colette Kress provided forward-looking estimates during Nvidia’s earnings call. She expects between $3 trillion and $4 trillion in AI infrastructure spending by decade’s end.
Market Concerns About AI Valuations
Recent market activity has shown some volatility around AI investments. OpenAI CEO Sam Altman and various experts raised bubble concerns last month.
These comments rattled markets as investors weighed AI sector valuations. Private AI company valuations have climbed dramatically over the past three years.
OpenAI reportedly commands a $500 billion valuation in current funding discussions. Anthropic secured $13 billion in funding last week at a $183 billion valuation.
Nebius counts major investors including Nvidia and Accel among its backers. This investor lineup adds credibility to the company’s AI infrastructure focus.
The Microsoft deal represents one of the larger AI infrastructure agreements announced recently. It demonstrates how tech giants continue investing heavily in AI computing capacity.
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