Nvidia injects $2B into Nebius to build gigawatt-scale AI cloud

Nvidia (NASDAQ:NVDA) announced a strategic $2 billion investment in Nebius Group (NASDAQ:NBIS) on Wednesday, the latest in a series of massive capital infusions aimed at fortifying the global AI infrastructure ecosystem.

Following the news, U.S.-listed shares of the Amsterdam-based cloud provider surged more than 10% in premarket trading.

The partnership centers on a multi-year buildout, with Nebius aiming to deploy more than 5 gigawatts of data center capacity by the end of 2030.

To achieve this, Nebius will receive early access to Nvidia’s next-generation hardware, including the Rubin architecture, Vera CPUs, and BlueField storage systems.

The collaboration covers the full technology stack, from AI factory design and fleet management to inference and "agentic AI" software.

The deal highlights the rapid rise of "neocloud" providers—firms like Nebius and CoreWeave that offer specialized, AI-centric capacity to hyperscalers and enterprises.

Nebius has already scaled its capital spending aggressively, reporting $2.1 billion in expenditures for the December quarter, up from just $416 million a year prior.

However, the transaction also renews scrutiny regarding "circular deals" within the AI sector.

Nvidia, currently the world’s most valuable firm, has increasingly provided capital to companies that are also its primary customers.

Similar recent moves include a $30 billion investment in OpenAI and a $2 billion stake in CoreWeave earlier this year.

Critics argue these arrangements may inflate demand signals, while Nvidia CEO Jensen Huang maintains they are essential to scaling the "agentic era" of intelligence.