Meta recently made a significant move by signing a long-term agreement with the Dutch cloud provider Nebius. This partnership could see Meta invest up to a remarkable $27 billion in Nebius’ artificial intelligence (AI) infrastructure over the coming years.
Nebius, which has quickly become a leading player in the European AI cloud market, will provide $12 billion in dedicated capacity. This includes one of the first large-scale uses of Nvidia’s new AI specialist chips, known as Vera Rubin. Nebius has seen its stock surge more than 400% since it went public in New York in 2024, reflecting the growing interest in AI technology.
Arkady Volozh, the CEO of Nebius, expressed excitement about expanding their partnership with Meta. Nebius aims to secure more long-term contracts to fuel growth in their AI cloud business. According to a recent report by Citi, Nebius is rated as a “buy/high risk,” based on its potential in the growing AI data center market and its efficient scaling capabilities.
The race for AI infrastructure is heating up. Meta is projected to spend between $115 billion and $135 billion this year on AI-related capital, contributing to a total of around $700 billion in spending by major players like Amazon, Alphabet, and Microsoft.
Investors are increasingly flocking to the AI cloud sector. For instance, UK-based startup Nscale recently raised $2 billion, valuing the company at $14.6 billion, with Nvidia among its investors. Additionally, Nvidia announced a $2 billion investment in Nebius, which led to another spike in Nebius’ stock price.
Historically, we’ve seen significant technological advancements fuel stock rallies. The current AI boom mirrors past tech booms, like the rise of the internet in the late ’90s. Now, companies are racing to harness AI’s potential to reshape industries.
In summary, the collaboration between Meta and Nebius signifies a pivotal moment in the AI landscape, showcasing the urgency and enthusiasm for building robust AI infrastructures worldwide. As this trend continues, it’s likely we’ll see further investment and innovations as major players seek to capitalize on the AI revolution.
For more detailed insights on AI developments, you can visit Citi’s research report or check CNBC’s coverage.
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