Dutch Nebius signs $27 billion deal with Meta

"Meta is paying up to $27 billion for AI cloud capacity from the Dutch company Nebius. The five-year contract is one of the largest deals Meta has ever signed for external infrastructure. Nebius will provide $12 billion in dedicated capacity, with an additional $15 billion in supplementary capacity."

"The quest for computing power is leading Meta to multiple providers simultaneously. The company previously signed a $14.2 billion contract with neocloud CoreWeave for AI infrastructure through 2032. Meta has also closed billion-dollar deals with Nvidia and AMD this year and is additionally developing its own chips."

"Nebius, spun off from Russian tech giant Yandex at the end of 2024, has grown rapidly since then. Last year, the company posted revenue growth of 355 percent and had already signed a previous contract with Meta worth approximately $3 billion. Last week, Nvidia invested $2 billion in Nebius, causing its shares to rise by 16 percent."

Meta is investing up to $27 billion over five years with Nebius, a Dutch data center company spun off from Yandex, to secure AI computing capacity. The deal includes $12 billion in dedicated capacity and $15 billion in supplementary capacity. This contract represents one of Meta's largest external infrastructure agreements and aligns with CEO Mark Zuckerberg's plan to invest up to $600 billion in U.S. infrastructure by 2028. Meta is pursuing a diversification strategy, simultaneously contracting with multiple providers including CoreWeave ($14.2 billion), Nvidia, and AMD, while developing proprietary chips. Nebius has experienced rapid growth with 355 percent revenue increase and recently received a $2 billion investment from Nvidia, reflecting the intense competition for AI computing resources among major technology companies.

Read at Techzine Global