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Nebius (Nasdaq: NBIS) has signed a multi-billion dollar agreement with Microsoft for the supply of cloud-based AI services.
The agreement represents a further achievement for the company that was founded on the ruins of Russian company Yandex, which was split up two years ago after the EU imposed sanctions on its managers.
In the past year, Nebius, a Netherlands-based company many of the managers of which reside in Israel, has established itself as one of the two leaders in neocloud, that is, the provision of infrastructure for artificial intelligence and high-performance computing, alongside US company CoreWeave.
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Following the announcement of the agreement with Microsoft, Nebius’s share price rose by almost 50% after a month of declines amounting to about 7%. The company’s current market cap is $21 billion.
Nebius founder and CEO Arkady Volozh said, “”Nebius’s core AI cloud business, serving customers from AI startups to enterprises, is performing exceptionally well. We have also said that, in addition to our core business, we expect to secure significant long-term committed contracts with leading AI labs and big tech companies.
“I’m happy to announce the first of these contracts, and I believe there are more to come. The economics of the deal are attractive in their own right, but, significantly, the deal will also help us to accelerate the growth of our AI cloud business even further in 2026 and beyond.”
Nebius said that it would finance the capital expenditure associated with the contract through a combination of cash flow coming from the deal and the issuance of debt secured against the contract. The deal, estimated to be worth $17.4 billion to $$19.4 billion until 2031, is based on Nebius’s new data center in Vineland, New Jersey.
Published by Globes, Israel business news – en.globes.co.il – on September 9, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
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