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Nvidia Pours USD 2 Billion into AI Cloud Firm Nebius

  • 2 hours ago
  • 2 min read

Nvidia will invest USD 2 billion in AI cloud company Nebius. This adds to the leading chipmaker's expanding list of investments in artificial intelligence firms, and data centre infrastructure


NVIDIA logo in bright green with white text on a reflective surface. Blurred background shows tech components with a dark setting.
Credit: UNSPLASH



A filing with the U.S. Securities and Exchange Commission, SEC, showed Nvidia agreed to buy shares representing a stake of around 8.3% in Nebius at USD 94.94 per share. Nebius, based in Amsterdam but listed on Nasdaq, saw its shares jump 13.8% to USD 109.72 by 1623 GMT.


The world's most valuable firm is investing heavily in the artificial intelligence ecosystem and expanding data centre infrastructure. This includes significant investments in companies that are often its customers, raising concerns about circular deals.


Nebius, an Nvidia customer, will deploy more than 5 gigawatts of data centre capacity by the end of 2030, according to the companies. This power capacity is equivalent to the needs of more than 4 million U.S. households.


Last year, Nvidia agreed to deploy at least 10 gigawatts of its systems for OpenAI. The chipmaker also announced an investment of USD 30 billion in that startup.


Nebius, alongside Coreweave, is among the neocloud firms gaining prominence through high-profile deals. These include supplying artificial intelligence infrastructure to U.S. hyperscalers, such as a USD 17 billion deal with Microsoft, and a USD 3 billion deal with Meta Platforms.


Unlike larger cloud firms serving a broad range of industries, neoclouds primarily focus on technology customers. They offer capacity specifically tailored for artificial intelligence technology.


Nvidia CEO Jensen Huang stated, "Nebius is building an AI cloud designed for the agentic era." Huang added the partnership would scale the cloud firm to meet surging global demand for intelligence.


The cloud firm reported a sharp jump in capital spending, rising to USD 2.1 billion in the December quarter from USD 416 million in the previous year. This increase reflects its focus on capacity expansion.

  • Nvidia is investing USD 2 billion in AI cloud company Nebius.

  • This investment is part of Nvidia's broader strategy to expand its artificial intelligence ecosystem and data centre infrastructure.

  • Nebius plans to deploy over 5 gigawatts of data centre capacity by 2030.


Source: REUTERS

 
 
 

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