"Nebius, which split off from Yandex, has announced a billion-dollar deal with Microsoft. The AI infrastructure provider will supply Microsoft with capacity worth $17.4 billion until 2031. Nebius' shares had already risen 220 percent since it went public in October last year, but the new Microsoft deal caused a sharp increase. Analyst Alex Platt of DA Davidson calls the agreement "further proof that Nebius is the leading neocloud player," beating even large hyperscalers for sovereign contracts."
"Amsterdam-based Nebius was part of Russian internet group Yandex until last year. After Russia's invasion of Ukraine, it sold its Russian operations and renamed itself Nebius. CEO Arkady Volozh had to resign from his position at Yandex following EU sanctions, but these were later lifted after he condemned the invasion as "barbaric." Nebius has thus gained a huge boost as a European AI infrastructure player. In December last year, the company raised $700 million from investors, including Nvidia, to expand its data center capacity."
Nebius agreed to supply Microsoft with AI computing capacity valued at $17.4 billion through 2031, triggering a sharp rise in Nebius shares. Nebius split from Yandex after selling Russian operations following Russia's invasion of Ukraine; CEO Arkady Volozh resigned amid EU sanctions that were later lifted after he condemned the invasion. Nebius raised $700 million in December from investors including Nvidia to expand data center capacity. Microsoft has faced persistent capacity shortages and has pursued partnerships with neoclouds like CoreWeave and Nebius to meet strong demand for AI services despite heavy investments in new data centers.
Read at Techzine Global
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