In a major push to strengthen its AI infrastructure, Meta has entered into a long-term agreement worth up to $27 billion with Dutch cloud provider Nebius.
The 5-year deal is expected to significantly expand Nebius’s presence in the fast-growing AI cloud computing market. Following the announcement, Nebius shares rose 14% in early trading.
Capacity details
As part of the agreement, Nebius will provide $12 billion worth of dedicated computing capacity to Meta over the next 5 years. This infrastructure will be deployed across multiple locations and will include one of the first large-scale implementations of NVIDIA’s new AI-focused Vera Rubin chips.
Meta has also committed to purchasing additional compute capacity of up to $15 billion from Nebius during this period.
Founded in 2022, Nebius has rapidly emerged as a key European player in the AI cloud space. The company’s share price has surged over 400% since its New York listing in 2024.
“We are pleased to expand our significant partnership with Meta as part of securing more large, long-term capacity contracts to accelerate the build-out and growth of our core AI cloud business,” said Arkady Volozh.
Citigroup has initiated coverage of Nebius with a buy/high risk rating. The bank cited a “differentiated view on AI datacenter [total addressable market] growth, margin improvement and NBIS’s capital-efficient scaling.”
Tech investments
Meta expects its AI-related capital expenditure to reach between $115 billion and $135 billion this year. This is part of a broader $700 billion investment trend by hyperscalers such as Amazon, Alphabet and Microsoft.
The development highlights the ongoing race among major tech firms to expand infrastructure and capture growth in the AI cloud computing sector, as investor interest continues to rise.
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