Mentioned:
Microsoft is pouring billions more into training new artificial intelligence models and developing new software. And they’re partnering up with a publicly traded company on the Nasdaq to do it.
What’s happening:
- Nebius (NASDAQ: NBIS) and Microsoft (NASDAQ: MSFT) have entered into a new $17.4B USD deal in which Nebius will provide access to GPUs and physical data centre infrastructure for high performance computing to Microsoft
By the numbers:
- The new deal between Microsoft and Nebius spans 5 years and will generate roughly $3.4B USD in revenue annually for Nebius
Why it matters:
- This is the single largest deal Nebius has ever done since the company was initially founded
Going deeper:
- Nebius will provide Microsoft with dedicated power capacity and GPU clusters at their large scale data centre located in Vineland, New Jersey
- Microsoft will keep full control of their artificial intelligence models and new software development as part of the deal and Nebius will only provide physical infrastructure and power
The intrigue:
- New mega deals for high performance computing have been making waves on Wall Street lately, with TeraWulf (NASDAQ: WULF) just recently landing a new multi billion dollar contract for cloud computing with Fluidstack that is partially backstopped by Google (NASDAQ: GOOG)
