Nebius Group N.V. (NBIS) shares surged 46.05% in pre-market trading on Tuesday following the announcement of a major commercial agreement with Microsoft. The deal, valued at approximately $17.4 billion through 2031, involves Nebius providing dedicated GPU infrastructure capacity to Microsoft for AI services.

Under the agreement, Nebius will deliver GPU infrastructure capacity from its new data center in Vineland, New Jersey, starting later this year. The rollout will occur in multiple tranches during 2025 and 2026. Microsoft also has the option to acquire additional services or capacity, potentially increasing the total contract value to about $19.4 billion.

This landmark deal is seen as a significant validation for Nebius, a Netherlands-based AI infrastructure company. CEO Arkady Volozh stated, "The economics of the deal are attractive in their own right, but, significantly, the deal will also help us to accelerate the growth of our AI cloud business even further in 2026 and beyond." The agreement is expected to help Nebius finance its data center capital expenditures through a combination of cash flow from the deal and debt issuance secured against the contract.