Microsoft's $19.4B Deal with Nebius Boosts AI Power, Drives Stock Surge
Microsoft has made a significant move in the AI sector, investing up to $33 billion in Neocloud providers. The tech giant has signed a substantial contract with Nebius, a Neocloud company, worth up to $19.4 billion. The deal, which aims to boost AI computing power, has sent Nebius' outlook soaring.
Microsoft's Scott Guthrie has revealed the company's aggressive strategy in the AI space, stating they are in 'full-blown land grab mode'. The tech giant has committed over $33 billion to multiple Neocloud providers in recent months. This latest deal with Nebius provides Microsoft access to over 100,000 of the latest Nvidia GB300 chips, helping to bypass AI datacenter capacity bottlenecks and free up its server farms.
Following the announcement, Nebius' outlook surged significantly. Shares were traded nearly 50% above the Nasdaq closing price on platforms like Tradegate. This has led to an increase in market capitalization close to $23 billion. Nebius has directly benefited from Microsoft's billion-dollar spending, with its outlook rising by 214 percent since the recommendation.
The Microsoft-Nebius deal, worth up to $19.4 billion, signals Microsoft's commitment to expanding its AI capabilities. With access to advanced chips and bypassing capacity bottlenecks, Microsoft aims to stay competitive in the AI space. Meanwhile, Nebius has seen a significant boost in its outlook and market capitalization due to this substantial contract.
