Nebius surges 47% as Microsoft signs a multi-billion-dollar GPU deal, boosting peers Cipher Mining and IREN.
Nebius Group (NBIS) shares skyrocketed in pre-market trading. The Amsterdam-based AI infrastructure provider revealed a landmark $17.4 billion agreement with Microsoft. Under the deal, Nebius will supply graphic processing units (GPUs) to the tech giant over five years. The value could expand to $19.4 billion if Microsoft increases its service capacity demand.
The announcement has set off a ripple effect across AI mining stocks. Cipher Mining (CIFR) and IREN (IREN) both climbed about 9% amid speculation of more infrastructure deals. The news also fueled renewed investor optimism in the broader AI computing space. Competition to secure GPU capacity is now at record highs.
A Deal Bigger Than Nebius’ Market Cap
Nebius
The size of the Microsoft contract highlights the scale of demand for AI infrastructure. At $17.4 billion, the deal exceeds Nebius’ current market capitalisation of $15.29 billion, signaling strong confidence in its capabilities.
Reuters reported that Microsoft could lift the total value to $19.4 billion through additional service agreements. The partnership gives Microsoft long-term access to Nebius’ Nvidia-powered GPUs, proprietary cloud services, and developer tools, technology that will support its AI and enterprise growth strategies.
For Nebius, the agreement not only delivers unprecedented revenue visibility but also places it in direct competition with established U.S. players such as CoreWeave and Lambda Labs, both of which recently secured large-scale cloud GPU deals.
AI Mining Stocks Catch the Wave
The ripple effect from Nebius’ deal was immediate. Cipher Mining and IREN gained nearly 9% each. Investors speculated that more partnerships between cloud AI providers and hyperscale technology firms may follow.
This mirrors a trend seen earlier in 2025. At that time, CoreWeave’s partnership announcements with Nvidia and Microsoft triggered sharp rallies across GPU infrastructure and mining companies. TerraWulf (WULF) and other AI-driven energy firms also experienced similar momentum. The gains came on the back of rising demand for GPU clusters powering large language models and generative AI.
The excitement underscores a critical market narrative: AI compute infrastructure is becoming as valuable as the applications built on it. With trillions of dollars expected to be spent on AI development in the next decade, investors are betting that firms supplying GPUs and compute capacity could see explosive growth.
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Market Position and Future Outlook
Nebius has quietly established itself as a leading GPU supplier in Europe, leveraging its proprietary hardware stack and cloud-based developer tools. By securing Microsoft as a marquee client, the company now enters a higher tier of relevance in the global AI race.
Industry analysts suggest this deal may set off a wave of follow-on contracts across the sector. For Microsoft, expanding its GPU capacity ensures smoother integration of AI into Azure, Copilot, and its enterprise services. For Nebius, the deal validates its position as a reliable supplier and gives it a platform to expand globally.
Cipher Mining and IREN, while smaller in scale, stand to benefit indirectly as institutional investors broaden their exposure to the AI infrastructure theme. With GPU supply chains still constrained, partnerships like Nebius-Microsoft highlight the scarcity premium on compute providers. To stay updated on crypto funding news and trends, visit our fundraising area for more insights.
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