Krux
February 16, 2026
Microsoft Drops $17.4B on Nebius GPU Deal
Published: February 16, 2026 at 4:47 AM
Updated: February 16, 2026 at 4:47 AM
100-word summary
Nebius just landed a massive multi-year agreement with Microsoft to supply dedicated GPU infrastructure from its new Vineland, New Jersey data center. The five-year contract, starting later in 2025, is worth $17.4 billion—potentially ballooning to $19.4 billion with extra capacity. GPU services will roll out in tranches through 2025-2026. Nebius plans to fund this through deal cash flow and contract-backed debt. The company's already flexing: 2025 revenue hit $529.8 million (up from $91.5 million in 2024), backed by a $700 million funding round from Accel and NVIDIA. This positions Nebius as a serious player in the AI infrastructure arms race.
What happened
Nebius just landed a massive multi-year agreement with Microsoft to supply dedicated GPU infrastructure from its new Vineland, New Jersey data center. The five-year contract, starting later in 2025, is worth $17.4 billion—potentially ballooning to $19.4 billion with extra capacity. GPU services will roll out in tranches through 2025-2026. Nebius plans to fund this through deal cash flow and contract-backed debt. The company's already flexing: 2025 revenue hit $529.8 million (up from $91.5 million in 2024), backed by a $700 million funding round from Accel and NVIDIA.
Why it matters
This positions Nebius as a serious player in the AI infrastructure arms race.