Nvidia Invests $2 Billion in Nebius to Expand AI Cloud Infrastructure

Nvidia Corp. has announced a strategic partnership with Nebius Group NV, investing $2 billion to develop and build artificial intelligence (AI) data centers. This collaboration aims to deploy over 5 gigawatts of Nvidia systems by the end of 2030, significantly enhancing Nebius's capacity to meet the surging demand for AI services. The investment reflects Nvidia's ongoing commitment to supporting companies that utilize its chips, amidst growing scrutiny over the potential for circular investments in the AI sector.

AI neocloud Nebius receives $2 billion investment from NvidiaThe Motley FoolNVIDIA invests US$ 2 billion in Nebius Group to expand AI cloud infrastructure – w.media

Nebius, headquartered in Amsterdam, was formerly the Dutch holding company for Yandex, Russia's largest internet company. After selling Yandex's Russian operations for $5.2 billion in 2024, Nebius rebranded and has since focused on providing AI-centric cloud services. The company has established partnerships with major tech firms, including Microsoft Corp. and Meta Platforms Inc., and has recently gained approval to construct its largest AI factory in Independence, Missouri.

Bloomberg

The $2 billion investment will primarily be allocated to the development of AI factories and infrastructure tailored for AI workloads. Nebius plans to utilize Nvidia's latest technologies, including the Rubin platform, Vera CPUs, and BlueField storage systems, to enhance its AI cloud capabilities. The partnership will also involve collaboration on AI factory design, inference infrastructure, and fleet management, aiming to create a comprehensive AI ecosystem that supports both startups and large enterprises.

NVIDIA invests US$ 2 billion in Nebius Group to expand AI cloud infrastructure – w.mediaNvidia backs Nebius with $2bn for AI cloud buildoutPharmaphorum

The global AI market, particularly in life sciences, is experiencing rapid growth, projected to reach approximately $11.8 billion by 2030. This surge in demand for AI services has led to significant investments in data center infrastructure, with Nebius reporting a staggering 479% year-over-year revenue growth in 2025. The company’s contract backlog now exceeds $20 billion, indicating strong market confidence in its services.

Pharmaphorum

Despite the promising outlook, Nvidia's strategy of investing heavily in companies that purchase its chips has drawn criticism. Analysts have raised concerns about the potential for creating an unsustainable bubble in the AI investment landscape, as these circular deals may inflate valuations without corresponding profits. Nebius, for instance, is currently trading at a high valuation relative to its sales, raising questions about its long-term financial viability.

Quartz

Jensen Huang, founder and CEO of Nvidia, emphasized the significance of this partnership, stating, “AI is at another inflection point — agentic AI, driving incredible compute demand and accelerating infrastructure buildout.” Arkady Volozh, CEO of Nebius, remarked, “Nebius has been built for AI since day one... now with Nvidia, we are extending that throughout the stack... as we build one of the first and largest clouds for all AI builders everywhere.”

NVIDIA invests US$ 2 billion in Nebius Group to expand AI cloud infrastructure – w.mediaPharmaphorum

As Nebius embarks on this ambitious expansion, it will focus on deploying its AI infrastructure across multiple gigawatt-scale data centers in the U.S. The collaboration with Nvidia is expected to enhance its technological capabilities and operational efficiency, positioning Nebius as a key player in the rapidly evolving AI cloud market.

NVIDIA invests US$ 2 billion in Nebius Group to expand AI cloud infrastructure – w.mediaNvidia backs Nebius with $2bn for AI cloud buildout