Nvidia to invest US$2 billion in neocloud Nebius amid AI data center push

Nvidia CEO Jensen Huang speaks during a press conference at the Asia-Pacific Economic Cooperation (APEC) CEO summit in Gyeongju, South Korea (AP Photo/Lee Jin-man)

Nvidia said on Wednesday it will invest US$2 billion in artificial intelligence cloud company Nebius, adding to the leading chipmaker’s growing list of investments in AI firms and data center infrastructure.

U.S.-listed shares of Amsterdam-based Nebius jumped over 10 per cent in premarket trading.

The world’s most valuable firm is investing heavily in the AI ecosystem and expanding data center infrastructure, including significant investments in companies that are often its customers, raising concerns about circular deals.

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Nebius, an Nvidia customer, will deploy more than five gigawatts of data center capacity by the end of 2030, the companies said. This represents power equivalent to the needs of more than 4 million U.S. households.

Last year, Nvidia agreed to deploy at least 10 gigawatts of its systems for OpenAI and later announced a $30 billion investment in the startup.

Nebius, along with Coreweave, is among the “neocloud” firms gaining prominence through high-profile deals to supply AI infrastructure to U.S. hyperscalers, including a $17 billion deal with Microsoft, and a $3 billion deal with Meta Platforms.

Unlike larger cloud firms that serve a broad range of industries, neoclouds mostly focus on tech customers and offer capacity tailored for AI technology.

“Nebius is building an AI cloud designed for the agentic era,” Nvidia CEO Jensen Huang said in a statement, adding the partnership will scale the cloud firm to meet the surging global demand for intelligence.

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The cloud firm reported a sharp jump in capital spending, rising to $2.1 billion in the December quarter from $416 million in the previous year, as it doubles down on capacity expansion.

(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Vijay Kishore)