Nebius Group Scores $17.4 Billion Deal with Microsoft, Raising Profile in AI Infrastructure Landscape

Microsoft has partnered with Nebius Group for a $17.4 billion, five-year infrastructure agreement, positioning Nebius alongside Oracle and CoreWeave in the AI infrastructure conversation. This deal validates Nebius' technology and provides Microsoft with access to adequate compute resources without assuming capital expenditure and execution risks. The partnership is transformative for Nebius, highlighting the growing demand for cloud-based GPU infrastructure and the potential of infrastructure-as-a-service in the AI ecosystem.

Microsoft Corp. (NASDAQ:MSFT) has entered into a significant five-year infrastructure agreement with Nebius Group (NASDAQ:NBIS), valued at approximately $17.4 billion. This strategic partnership positions Nebius alongside other key players like Oracle and CoreWeave in the burgeoning AI infrastructure market. The deal underscores the growing demand for cloud-based GPU infrastructure and highlights the potential of infrastructure-as-a-service in the AI ecosystem.

The agreement, announced on September 9, 2025, will see Nebius providing Microsoft with access to its advanced AI cloud infrastructure. This collaboration allows Microsoft to leverage Nebius' technology without incurring capital expenditure or execution risks. The deal is a testament to Nebius' technological prowess and its ability to meet the high-performance computing demands of major tech companies.

Nebius Group, a technology company that builds full-stack infrastructure to service the global AI industry, has seen a surge in demand for its services. The company reported a significant increase in revenue during Q2 2025, with its core AI infrastructure business becoming EBITDA positive ahead of projections. This financial performance is expected to continue, driven by the strong demand for AI cloud infrastructure.

The partnership with Microsoft is a major milestone for Nebius. It follows the company's recent hyperscaler contract with Microsoft worth around $19.4 billion over five years, announced in early September. This deal further validates Nebius' technology and positions it as a key player in the AI infrastructure market.

The agreement with Microsoft is part of a broader trend in the tech industry, where companies are increasingly turning to infrastructure-as-a-service providers to access high-performance computing resources. This trend is driven by the growing demand for AI and the need for scalable, flexible infrastructure solutions.

Looking ahead, the partnership between Microsoft and Nebius Group is expected to accelerate GPU installations and bring New Jersey online as quickly as possible. This will further enhance Nebius' capabilities and solidify its position in the AI infrastructure market.

The deal also highlights the competitive landscape in the AI infrastructure sector. Companies like Oracle and Meta are actively seeking partnerships to expand their AI cloud services and gain a competitive edge. The potential Oracle-Meta alliance, valued at around $20 billion, is another example of the intense competition in this space.

In conclusion, the Microsoft-Nebius partnership is a significant development in the AI infrastructure market. It validates Nebius' technology, positions it as a key player, and highlights the growing demand for cloud-based GPU infrastructure. As the AI ecosystem continues to evolve, partnerships like this one will play a crucial role in shaping the future of technology.