In a groundbreaking move that's shaking the tech world, Nebius Group has announced a jaw-dropping $17.4 billion deal to supply Microsoft with GPU infrastructure over the next five years. The news sent Nebius shares soaring by an incredible 47% after hours!

This monumental agreement highlights the skyrocketing demand for high-performance AI computing. As businesses scramble to enhance their AI capabilities, this partnership positions Nebius at the forefront of the AI infrastructure revolution.

But wait, there's more! Microsoft may expand the deal to include additional service capacities, potentially pushing the total value to a staggering $19.4 billion.

Nebius specializes in offering a powerful combination of Nvidia graphic processing units and AI cloud services. They provide developers with the essential computing tools, storage, and managed services they need to create and optimize their AI models, all backed by state-of-the-art cloud software and proprietary hardware.

Starting later this year, Microsoft will gain access to dedicated GPU infrastructure from Nebius' cutting-edge data center located in Vineland, New Jersey. This strategic move is expected to supercharge Microsoft’s AI operations.

Arkady Volozh, the CEO of Nebius, expressed his enthusiasm, stating, "The economics of the deal are appealing, but significantly, it will also magnify our AI cloud business growth into 2026 and beyond!"

Interestingly, Microsoft is already the largest customer of CoreWeave, a major competitor of Nebius. Earlier this year, CoreWeave faced scrutiny as reports surfaced about possible contract cancellations with the tech giant.

Emerging from the breakup of the Russian tech behemoth Yandex, Amsterdam-based Nebius is poised to take the AI world by storm with this landmark agreement.