$NBIS (-5,02%) announces multi-billion dollar contract with Microsoft for AI infrastructure. 🔥
As part of this multi-year agreement, $NBIS will provide capacity to Microsoft from the end of this year $MSFT (-0,13%) capacity from its new data center in Vineland, New Jersey.
Arkady Volozh, founder and CEO of Nebius, said:
"Nebius' core AI cloud business, serving customers ranging from AI startups to large enterprises, is performing exceptionally well. We have also said that in addition to our core business, we expect to secure significant long-term contracts with leading AI labs and large tech companies. I am pleased to announce the first of these contracts and I believe more will follow. The economics of the deal are attractive in their own right, but more importantly, the agreement will help us to further accelerate the growth of our AI cloud business from 2026 and beyond."
$NBIS (-5,02%) plans to fund capital expenditures related to the agreement through a combination of cash flow from the deal and borrowings secured by the agreement in the near term, on terms enhanced by the counterparty's credit rating. The company is also exploring several additional financing options to enable significantly faster growth than originally planned.
