Wedoany.com Report-Sept. 10, Microsoft has entered into a landmark agreement with Amsterdam-based Nebius to secure large-scale GPU compute power, reflecting the significant investments required to compete in the rapidly expanding artificial intelligence sector. The deal, announced this week, is valued at $17.4 billion over five years, with the potential to reach $19.4 billion depending on usage.

The capacity will be supplied from Nebius’s new data centre in Vineland, New Jersey, which is expected to begin operations later this year. The contract represents the largest in Nebius’s history and is among the most substantial commitments to outsourced GPU infrastructure to date.

Nebius, a company formed from the international assets of Yandex, has positioned itself as a “neocloud” provider. Unlike traditional cloud firms that focus on general enterprise computing, Nebius specializes in delivering infrastructure designed specifically for AI workloads. The partnership with Microsoft underscores this positioning and strengthens Nebius’s role in the global AI infrastructure market.

For Microsoft, the agreement highlights a strategic decision to lease GPU capacity instead of constructing all facilities internally. Analysts note that this model allows the company to expand its AI services more rapidly while reducing the need for long-term capital investment in new data centres.

Microsoft has experienced strong demand for its AI offerings, such as Azure OpenAI Service and Copilot, which has placed extraordinary pressure on available GPU resources. By securing guaranteed access to Nebius’s infrastructure, Microsoft can scale more quickly and mitigate risks related to supply shortages.

The announcement also prompted a sharp investor response. Nebius shares rose by more than 30% following the news, with the market interpreting the deal as validation of Nebius’s approach and growth potential. The company has already reported strong revenue growth in 2025 and aims to achieve up to $1 billion in annual recurring revenue by 2026.

For Nebius, the agreement provides long-term revenue stability and the capital necessary to support expansion across the United States and Europe. The company has also indicated openness to further partnerships with other hyperscale operators and AI developers as demand for high-performance infrastructure continues to increase.

This collaboration demonstrates the scale of investment and strategic cooperation required to sustain growth in AI. It positions Microsoft to meet rising demand for advanced AI solutions while enabling Nebius to expand its presence as a specialized provider in the competitive cloud services market.