Nebius Group Surges 16% After Nvidia Announces $2 Billion Investment
Following Nvidia Corp.'s announcement of a $2 billion strategic investment in the Dutch AI cloud provider, shares of Nebius Group NV (NBIS)
Quick overview
- Nvidia Corp. announced a $2 billion strategic investment in Nebius Group NV, leading to a 16.14% surge in its shares.
- The partnership aims to develop a 'best-in-class inference and agentic AI stack' and will utilize Nvidia's latest hardware, including the Rubin GPU series.
- Nebius plans to expand its infrastructure with a new 300 megawatt cloud campus in New Jersey, aiming for over 5 gigawatts of processing power by the end of the decade.
- The agreement mirrors a recent deal Nvidia made with CoreWeave, highlighting Nvidia's strategy to support select AI infrastructure providers.
Following Nvidia Corp.’s announcement of a $2 billion strategic investment in the Dutch AI cloud provider, shares of Nebius Group NV (NASDAQ: NBIS) surged 16.14% to close at $112 on Wednesday, marking the company’s third straight session of gains.
With Nvidia contributing funds and pledging to work together on AI factory design, technical reviews, and the creation of what both companies are referring to as a “best-in-class inference and agentic AI stack” for developers and enterprises, the deal represents a strengthening partnership between the two businesses.
Pioneering the Rubin Frontier
Nebius will implement many generations of Nvidia’s newest hardware throughout its platform as part of the partnership, including the future Rubin GPU series and Vera CPUs. With Rubin’s ability to handle inference workloads at ten times the cost-effectiveness of Blackwell chips, the most sophisticated GPUs Nebius currently provides customers, it represents a major improvement in efficiency. Servers outfitted with both Rubin and Vera supposedly give 10 times greater performance per watt than Nvidia’s previous-generation systems. With 72 Rubin GPUs, 32 Vera CPUs, and over 1,000 other chips, each device weighs almost two tons. Additionally, Nebius intends to use Nvidia’s BlueField chip series to relieve server CPUs of storage management duties.
Nebius’s planned infrastructure expansion will be financed in part by the investment. In addition to its data center network that spans the United Kingdom, France, Finland, and Iceland, the company is now constructing its largest site to date, a 300 megawatt cloud campus in New Jersey. By the end of the decade, Nebius hopes to have added more than 5 gigawatts of processing power.
The Push for Agentic AI
Nebius provides a range of managed services for AI developers in addition to raw infrastructure, such as a cloud-based Jupyter Notebook environment and a hosted version of MLFlow for evaluating AI training runs. The business also runs the Token Factory, a service that adds autoscaling, safety precautions, and speculative decoding—a method that speeds up inference by shifting computations to a smaller, more effective neural network—to open-source AI models.
Nebius released Nvidia’s Nemotron 3 Super model on its platform in conjunction with the announcement. The mixture-of-experts model, which powers AI agents, is effective for large-scale deployments since it supports context windows of up to one million tokens and activates about one-tenth of its 120 billion parameters to create replies.
The Nebius agreement is quite similar to one that Nvidia made with another AI cloud provider, CoreWeave, a few weeks ago. In that contract, Nvidia contributed $2 billion after placing a $6.3 billion infrastructure order. As demand for GPU-powered cloud services continues to rise, CoreWeave has likewise set a goal of 5 gigawatts of compute capacity by 2030, indicating that Nvidia is methodically supporting a small number of AI infrastructure providers.
NBIS had a little decline in after-hours trading on Wednesday, dropping 2.67% to $109.01, although the stock is still significantly higher the week after the announcement.
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