NEBIUS (NBIS) stock surged 7.32% in intraday trading on Tuesday, following the announcement of a significant deal with tech giant Microsoft. The company, also known as Nebius Group, has agreed to provide Microsoft with GPU infrastructure capacity in a contract valued at $17.4 billion over a five-year term.

This substantial agreement highlights NEBIUS's growing importance in the AI infrastructure landscape. By securing such a large-scale, long-term commitment from Microsoft, NEBIUS has not only ensured a steady revenue stream but also positioned itself as a key player in the rapidly expanding AI computing market. The deal is likely to boost the company's financial outlook and market presence significantly.

The NEBIUS-Microsoft partnership is part of a broader trend of massive investments in AI infrastructure across the tech industry. Companies like OpenAI, Google, Nvidia, and others are pouring billions into developing and securing computing power to meet the surging demand for AI services. This deal underscores the critical role that specialized GPU infrastructure providers like NEBIUS are playing in the AI revolution, as tech giants seek to bolster their capabilities in this competitive and fast-growing field.