Nvidia-Backed Nebius Secures $17.4B AI Cloud Deal With Microsoft

Nvidia's shares rose sharply amid excitement over its upcoming Rubin CPX AI chip, which is designed to enhance efficiency in video and software generation by separating input understanding from response generation. This chip, expected by late 2026, aims to transform AI workloads in data centers worldwide, reflecting Nvidia’s continued dominance in AI hardware with a market cap exceeding $4 trillion and massive sales growth. In a related development, Nvidia-backed Nebius Group announced a landmark AI infrastructure deal with Microsoft valued between $17.4 billion and $19.4 billion, involving dedicated AI computing capacity from a new data center in New Jersey. Nebius shares surged over 40% in after-hours trading following the announcement, marking its first long-term contract with a major tech firm and signaling strong growth prospects for its AI cloud business. Microsoft’s growing demand for AI cloud infrastructure, driven by OpenAI and ChatGPT adoption, has led it to increase reliance on third-party providers like Nebius and CoreWeave, both utilizing Nvidia technology. This deal underscores Nvidia's pivotal role in fueling the AI boom through its hardware and strategic partnerships in cloud computing.