nebius soars as microsoft bets big on ai cloud
redmond, Tuesday, 9 September 2025.
nebius group shares jumped as much as 55% after securing a deal with microsoft to provide crucial ai infrastructure. the agreement, potentially worth $19.4 billion, aims to alleviate pressure on ai cloud resources amid a global gpu shortage. this deal underscores the intense demand for high-performance computing needed for ai, with microsoft potentially acquiring additional capacity. following the announcement, nebius, spun off from yandex in 2023, is exploring financing options to fuel further expansion.
nvidia’s pivotal role in ai infrastructure
Nvidia stands as a primary beneficiary in this expanding AI infrastructure landscape [1]. As a key investor in Nebius, Nvidia is positioned to gain from the increased demand for GPUs [1]. Nebius’s core business revolves around supplying Nvidia GPUs and AI cloud services, making this deal a significant endorsement for Nvidia’s technology [2]. Nvidia’s GPUs are essential for training AI models, and the Microsoft-Nebius agreement highlights the sustained need for powerful computing equipment [1][2].
revenue boost and market validation for nvidia
The Nebius-Microsoft agreement not only validates Nvidia’s market position but also promises substantial revenue potential [1][2]. With Microsoft’s AI capital expenditure soaring, the demand for Nvidia’s high-performance GPUs is set to rise [2]. Microsoft’s increased reliance on third-party providers like Nebius to meet AI workload demands underscores Nvidia’s critical role in enabling AI advancements [1]. Nvidia CFO Colette Kress anticipates $3 trillion to $4 trillion in AI infrastructure spending by the end of the decade, further cementing Nvidia’s long-term growth prospects [1].
competitive advantage and market confidence
This deal strengthens Nvidia’s competitive advantage by solidifying its position as the leading provider of AI infrastructure [1]. The surge in Nebius’s stock and the positive, albeit smaller, movement in CoreWeave’s shares reflect market confidence in the AI infrastructure sector [1]. Even concerns about an AI bubble raised by figures like OpenAI CEO Sam Altman have not deterred substantial investments, indicating the perceived long-term value and growth potential in AI [1]. The Nebius-Microsoft partnership serves as a testament to the ongoing and robust demand for AI capabilities, benefiting Nvidia directly [1][2].