Nebius Group shares jumped 47% in pre-market trading after the company announced a multi-year agreement to supply Microsoft with graphic processing units (GPUs). Reuters values the deal at $17.4 billion over five years, a figure that currently exceeds Nebius’s market capitalization of $15.29 billion. Reuters also reports Microsoft could expand the contract to $19.4 billion by buying additional services capacity.
Nebius supplies Nvidia-powered GPUs, cloud services and AI developer tools built on its own hardware and software stack. The deal underscores rising enterprise demand for large-scale AI compute and the premium companies can command when they stitch together hardware, software and hosting services.
Stocks of other companies tied to AI compute and crypto mining also moved higher on the news. Cipher Mining and IREN each climbed about 9% on speculation that large cloud customers will seek more partnerships with specialized hosting and GPU providers — a pattern seen earlier this year with CoreWeave and TerraWulf securing major AI-related deals.
Why readers should care: big, long-term contracts like this can reshape capital allocation across specialized infrastructure providers. For crypto-focused firms that manage large-scale data centers, AI hosting offers a complementary revenue stream and a way to monetize excess capacity when mining demand is soft.
Risk considerations: share-price moves on such announcements often reflect expectations rather than cash flows. Execution risks, supply-chain constraints for GPUs, and possible contract changes mean the market reaction may be volatile. This is not investment advice.
Source: Reuters. Read the original coverage for full details.