Contract worth up to $19.4 billion for GPU and computing power in the US
A Strategic AI Alliance
Nebius, formerly Yandex, has announced a billion-dollar deal with Microsoft for the leasing of GPUs dedicated to artificial intelligence. The agreement covers a data center in Vineland, New Jersey, and involves the supply of computing capacity between 2025 and 2026.
The Numbers Behind the Deal
The contract could be worth up to $17.4 billion by 2031, rising to $19.4 billion if Microsoft decides to purchase additional capacity. Computing power is increasingly seen as the new digital gold of the AI economy.
Key Terms and Conditions
According to documents filed with the SEC, Microsoft may terminate the contract if Nebius fails to deliver GPUs on time. Both parties may withdraw in case of material breaches not corrected within 60 days, or in the event of bankruptcy unresolved within 30 days. However, a reorganization under Chapter 11 of the US Bankruptcy Codewould not automatically trigger contract termination.
Nebius: From Yandex to a Global Vision
Nebius is a Dutch company originally spun off from Yandex, the Russian tech giant founded by Arkady Volozh. After its 2011 Nasdaq IPO, the group expanded internationally. Today, Nebius is repositioning as a European-based global provider of AI infrastructure.
Microsoft’s Strategic Move
For Microsoft, the Nebius deal is another step in strengthening its leadership in generative AI, alongside its partnership with OpenAI. The GPUs supplied by Nebius will fuel cloud expansion and the race for dominance in artificial intelligence.
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