Nebius Group Secures Multi-Billion-Dollar AI Infrastructure Deal with Microsoft

Nebius Group (NASDAQ:NBIS) is one of the worst AI stocks to invest in according to financial media. On September 8, Nebius Group announced a multi-year, multi-billion-dollar agreement with Microsoft Corp. (NASDAQ:MSFT). The deal is valued at $17.4 billion over five years, with an option for Microsoft to acquire additional services that could bring the total contract value to ~$19.4 billion.

Under the agreement, Nebius will provide Microsoft with dedicated AI infrastructure capacity from its new data center in Vineland, New Jersey, with deliveries starting later in 2025. Nebius plans to finance the capital expenditures for this contract using a combination of cash flow from the deal itself and issuing debt secured by the contract. The company also stated that this is its first long-term contract with a major tech company and that more are expected in the future.

Nebius views this deal as a catalyst for its business. It is expected to accelerate the growth of Nebius’s AI cloud business in 2026 and beyond. The company also has other business ventures, including Avride (autonomous driving technology) and TripleTen (an edtech company), and holds equity stakes in businesses like ClickHouse and Toloka.

Nebius Group (NASDAQ:NBIS) is a technology company that builds full-stack infrastructure to service the global AI industry in the Netherlands, Europe, North America, and Israel.

While we acknowledge the potential of NBIS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.