Nvidia announced on Wednesday that it will invest $2 billion in the AI cloud company Nebius. This move adds to the chipmaker’s growing list of investments in AI businesses and data centers. The investment shows Nvidia’s strong commitment to the artificial intelligence sector.
A document filed with the U.S. Securities and Exchange Commission (SEC) showed that Nvidia agreed to buy shares, giving it about an 8.3% stake in Nebius, at $94.94 per share. Nebius, which is based in Amsterdam but listed on Nasdaq, saw its shares jump 13.8% to $109.72 by 1623 GMT following the news.
Nvidia, now the world’s most valuable company, is pouring money into the AI world and expanding data center infrastructure. It often invests in companies that also buy its products. Some people worry these “circular deals” might raise questions.
Nebius, already a customer of Nvidia, plans to set up more than 5 gigawatts of data center capacity by the end of 2030. To give you an idea, this is enough power for over 4 million U.S. homes. This massive expansion highlights the increasing demand for AI infrastructure.
Last year, Nvidia made a deal to provide at least 10 gigawatts of its systems for OpenAI and later announced a $30 billion investment in the startup. These large investments show Nvidia’s strategy to become a central player in the AI revolution.
Nebius, along with another company called Coreweave, is a “neocloud” firm. These companies are becoming more important because they make big deals to supply AI infrastructure to major U.S. cloud providers. For example, Nebius has a $17 billion deal with Microsoft and a $3 billion deal with Meta Platforms. Unlike bigger cloud companies that serve many different types of businesses, neoclouds mainly focus on tech customers and offer services specifically designed for AI.
Nvidia CEO Jensen Huang said in a statement, “Nebius is building an AI cloud designed for the agentic era.” He added that this partnership will help Nebius grow to meet the huge global demand for AI. The cloud company itself reported a big increase in spending on its facilities, rising to $2.1 billion in the December quarter from $416 million the year before, as it rapidly expands its capacity.
