In this articleNBIS your favorite stocksCREATE FREE ACCOUNTNebius, which was spun out from Russian internet giant Yandex, vides graphics cessing units or GPUs for training artificial intelligence models.Sopa Images | Lightrocket | Getty ImagesStock in artificial intelligence infrastructure firm Nebius Group soared 40% Tuesday, a day after the company disclosed a multi-billion-dollar deal with Microsoft.The Amsterdam-based firm announced it had struck a multi-year deal with Microsoft worth up to $19.4 billion to vide cloud computing power for AI workloads.
Nebius, which was spun out from Russian internet giant Yandex in 2023, vides graphics cessing units — or GPUs — for training AI models.The deal will be worth $17.4 billion through 2031 to Nebius, which counts the s of Nvidia and Accel as investors.
Microsoft may also acquire additional computing capacity under the arrangement, boosting overall contract value to $19.4 billion.Nebius s climbed 60% Monday in ext trading and continued to surge Tuesday amid investor excitement over the deal.
The news also boosted s of rival AI infrastructure firm CoreWeave, which was up 8%.Read more CNBC newsChina's Unitree plans $7 billion IPO valuation, Reuters reports, as humanoid robot race heats upAI firm Mistral valued at $14 billion as chip giant ASML takes major stakeNvidia's Huang joining Trump on UK state visit next weekEx-Meta employee files whistleblower suit for alleged security flaws at WhatsAppThe Nebius-Microsoft pact suggests demand for powerful computing equipment needed to train and run advanced AI systems remains strong.Last month, Nvidia, the biggest player in the AI infrastructure space, reported better-than-expected earnings and revenue for the three months through June and said it expects sales growth for the current quarter to remain above 50%, amid continued demand for its AI chips.Nvidia Chief Financial Officer Colette Kress said in the company's earnings call at the time that it expects between $3 trillion and $4 trillion in AI infrastructure spending by the end of the decade.
were rattled last month after OpenAI CEO Sam Altman and a number of experts and analysts raised concerns that the AI market may be in a bubble.Valuations of private AI companies have soared in the last three years.
OpenAI is reported to be fetching a $500 billion valuation, while Anthropic last week secured a $13 billion funding round at a $183 billion valuation.