Nebius shares surged 17% Tuesday after Nvidia disclosed a 9.3% stake in the Amsterdam-based AI cloud company, extending a rally that has lifted the stock nearly 250% over 12 months.
The move builds on Nvidia’s previously announced $2 billion investment in Nebius, with the two companies set to work together on AI infrastructure deployment, fleet management, inference and AI factory design.
Nebius has also benefited from heavy customer spending: Meta signed a long-term agreement in March to spend up to $27 billion on its AI infrastructure.
A week earlier, Nebius raised $775 million in its first senior secured debt facility, and Freedom Capital Markets upgraded the stock to buy, underscoring investor appetite for AI infrastructure plays.
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Nvidia’s $2 Billion Bet: How a 9.3% Stake is Supercharging Nebius’s AI Compute Dominance
Overview
Nvidia’s disclosure of its 9.3% stake in Nebius, structured through both direct share acquisition and a pre-funded warrant, immediately boosted market confidence and sent Nebius shares up nearly 7%. This strategic investment, valuing Nebius at $2 billion, signals Nvidia’s strong belief in Nebius’s growth and positions both companies for mutual benefit. The market’s swift, positive reaction highlights investor enthusiasm for the partnership, as Nebius gains a powerful ally and Nvidia stands to benefit from Nebius’s advancements in AI infrastructure. This move sets the stage for accelerated growth and deeper collaboration in the competitive AI landscape.