Shares of Nebius Group jumped more than 60% in after-hours trading on Monday. This huge leap came right after the company shared news of a landmark deal with Microsoft ─ up to $19.4 billion over the next five years. This collaboration secures Nebius Group’s position as one of the top suppliers of Nvidia graphics chips. These chips are the key ingredient for developing artificial intelligence models.
Founded in 1989, this Russian company has already taken significant steps in establishing their presence here in the U.S. In a blog post published earlier this month, the company shared the good news. They announced their intentions to expand office spaces in San Francisco, Dallas, and New York. We’re hoping that this expansion improves its capacity to engage with American consumers and empower the rapidly growing AI ecosystem.
OpenAI, one of the biggest users of Microsoft’s Azure cloud, is seeking additional computing capacity. The quick adoption of its AI-driven product, ChatGPT, is fueling this need for even more capacity. Interestingly, Google is reported to have become OpenAI’s new computing provider just last week, according to CNBC reporting. This change in focus underscores the increasingly cutthroat AI infrastructure race that has seen Amazon, Alphabet, and Microsoft’s contentious dash for dominance.
Together, the partnership between Nebius Group and Microsoft will accelerate powerful new AI capabilities to market. Individually and together, they’re trying to stay ahead of the rapidly increasing demand for these technologies. Users are dramatically scaling up their use of ChatGPT. At the same time, Nebius Group’s influx of Nvidia graphics chips will be instrumental in building out these world-class high-performance AI models.
“Growing our presence in the US means we can be closer to our customers and support innovative American AI businesses on their journey into the future,” – Nebius.
With this strategic acquisition, Nebius Group doubles down on its commitment to build better and more efficient service delivery. Combined with recent executive orders, this decision showcases AI technology’s increasing importance in many industries. Interest and investment in AI have exploded in recent months. Private businesses—like the Russian firm Nebius—are willing and able to benefit from such a trend.