Nvidia Invests $2B in Nebius to Expand AI Cloud Empire

Nvidia Deepens AI Infrastructure Push With $2 Billion Nebius Stake

Nvidia announced it will invest $2 billion in Nebius Group, the Amsterdam-based AI cloud company, acquiring an 8.3% stake at $94.94 per share. The deal marks Nvidia's latest and largest move into the fast-growing "neocloud" layer of the AI stack — specialized cloud providers built from the ground up for AI workloads.

Nebius shares surged 16% on the announcement, pushing the company's market capitalization to approximately $28 billion. The investment comes as Nvidia accelerates a strategy of backing the infrastructure companies that buy its chips, creating a flywheel effect that reinforces demand for its GPUs.

"AI factories are becoming the most important infrastructure of our time. Nebius is building the foundation that enterprises need to deploy AI at scale." — Jensen Huang, Nvidia CEO

The Neocloud Strategy

Unlike hyperscale cloud providers such as AWS and Azure that serve broad customer bases, neoclouds like Nebius and CoreWeave focus specifically on AI-optimized compute. Nebius has already secured major deals, including a $17 billion contract with Microsoft and a $3 billion agreement with Meta Platforms to supply AI infrastructure.

As part of the new partnership, Nvidia and Nebius will collaborate on AI infrastructure deployment, fleet management, inference optimization, and AI factory design. Nebius committed to deploying more than 5 gigawatts of data center capacity by the end of 2030 — enough to power millions of AI inference operations simultaneously.

The AI Infrastructure Arms Race Intensifies

The investment reflects the intensifying competition among AI infrastructure providers. With global AI compute demand projected to grow 10x by 2028, neoclouds have emerged as critical intermediaries between chip makers and AI companies. Nvidia's stake in Nebius follows its $20 billion licensing deal with Groq and its partnership with Mira Murati's Thinking Machines Lab.

Nebius, which spun out of Yandex's international operations in 2024, has built a reputation for high-performance AI cloud services across Europe and the Middle East. The company operates data centers in Finland, France, and the Netherlands, with expansion plans across the U.S. and Asia.

What This Means for the AI Industry

For AI startups and enterprises, the Nvidia-Nebius partnership signals expanding access to high-performance AI compute outside the traditional hyperscaler ecosystem. The neocloud model offers more specialized, cost-effective infrastructure for training and deploying AI models — particularly appealing for companies that need GPU clusters without the overhead of building their own data centers. For engineers and job seekers, the booming AI infrastructure sector continues to create strong demand for roles in data center operations, distributed systems, and GPU-accelerated computing.