Nvidia has agreed to inject a massive amount of capital into the Amsterdam-based artificial intelligence cloud company Nebius Group. This $2 billion Nvidia Nebius investment pairs a substantial financial boost with a deep technical partnership designed to expand global AI infrastructure. The collaboration targets the deployment of more than five gigawatts of compute capacity powered by Nvidia hardware by the end of 2030.
The Nvidia Nebius investment takes the form of a private placement that acts as a major catalyst for the cloud infrastructure provider. Following the announcement, the market reacted strongly, though reports vary regarding the exact stock surge. According to TechZine, Nebius shares shot up 10 percent, while The Next Web reported that shares rose approximately 16 percent.
Expanding AI Compute Capacity to 5 Gigawatts
Nebius plans to use the $2 billion capital injection to develop its full-stack AI cloud platform and construct new greenfield data centers. The company already operates multiple gigawatt-scale AI factories in the United States, including a facility located in Kansas City, Missouri.
To meet the growing computing demands of modern technology, Nebius recently secured approval to build a massive 1.2-gigawatt AI factory on a 400-acre site near Independence, Missouri. Power delivery for this new facility is expected in the second half of 2026. With Nvidia’s direct support, Nebius aims to scale its total infrastructure capacity past the five-gigawatt mark by the end of the decade.
A Four-Pillar Strategic Partnership
Beyond the financial aspect, the two companies have outlined a strategic collaboration spanning four distinct areas. First, the partnership focuses on AI factory design and support, which includes early access to hardware samples, design review processes, and bring-up assistance. Second, the companies will work on developing inference and agentic AI stacks using optimized models, libraries, and the latest software from Nvidia.
The third pillar involves multi-generation infrastructure deployment. Nebius will receive early access to upcoming hardware platforms, including the Rubin architecture, Vera CPUs, and BlueField storage systems. Finally, the partnership includes comprehensive fleet management. Nebius will utilize GPU health monitoring tools to optimize the operation of its massive computing clusters at scale.
Financial Structure and Rapid Revenue Growth
The transaction is structured differently than a standard equity purchase. Nvidia purchased pre-funded warrants that are exercisable into 21,065,936 Nebius Class A ordinary shares. The near-nominal exercise price is set at $0.0001 per share, yielding gross proceeds of roughly $2 billion. This warrant mechanism gives Nebius the cash upfront while deferring formal share issuance until the warrants are exercised.
Nvidia agreed to a six-month lockup period on both the warrants and any shares acquired through them. The deal was completed as an exempt offering under United States securities law. Prior to the announcement, Nebius held a market capitalization of roughly $24 billion, which expanded to approximately $28 billion after the news broke.
Financially, Nebius has experienced rapid growth alongside substantial costs. The company reported a 547 percent year-on-year revenue increase in the fourth quarter of 2025, reaching $227.7 million. However, it also recorded a net loss of $249.6 million for the quarter while spending $2.1 billion on capital expenditures to secure H200 and Blackwell GPUs. Nebius exited 2025 with $1.25 billion in annualized recurring revenue and projects between $7 billion and $9 billion for 2026.
From Yandex Origins to AI Infrastructure Leader
Nebius Chief Executive Officer Arkady Volozh positions the company as cloud infrastructure built specifically for AI from the ground up. This approach contrasts with hyperscalers that adapt general-purpose cloud architectures. Nvidia Chief Executive Officer Jensen Huang framed the new partnership around the rising computing demands generated by agentic AI.
The origins of Nebius are rooted in Yandex N.V., the Dutch holding company that once controlled Russia’s dominant internet group. Following the 2022 Russian invasion of Ukraine, the company spent two years restructuring. In July 2024, the entity sold its Russian business to local investors for $5.2 billion and retained its international AI assets, including cloud infrastructure, the Avride autonomous vehicle unit, and the TripleTen education technology platform. Trading for the renamed Nebius Group resumed on the Nasdaq in October 2024.
A Broader Strategy of AI Infrastructure Deals
This massive funding round builds upon an existing relationship. In December 2024, Nvidia participated in a $700 million funding round for Nebius, acquiring an equity stake of roughly 0.5 percent. Since splitting from Yandex, Nebius has also signed other major contracts, including a $17.4 billion deal with Microsoft and a five-year contract with Meta worth approximately $3 billion.
The recent investment follows a familiar pattern for Nvidia. In January 2026, the chipmaker made a similar $2 billion investment in CoreWeave, and in early March, it invested $2 billion each in optical component makers Lumentum and Coherent. Critics point out a circular dynamic in these deals: Nvidia invests heavily in infrastructure companies that subsequently use the capital to purchase more Nvidia equipment.
