Wednesday, September 10, 2025

Microsoft Secures Nearly $20 Billion Deal with Former Yandex Executive’s Company • The Register

Microsoft and Nebius Group: A $19.4 Billion AI Deal Shaping the Future

Microsoft has taken a substantial step in the AI landscape by signing a crucial agreement with the Nebius Group, worth up to $19.4 billion over five years. This partnership showcases the escalating demand for GPU infrastructure, an essential component for AI advancements.

Key Highlights:

  • Investment Focus: The contract emphasizes Microsoft’s commitment to enhancing its AI capabilities with dedicated GPU services from Nebius’s New Jersey datacenter.
  • Strategic Leadership: Arkady Volozh, the former CEO of Yandex, now leads Nebius, ensuring an innovative vision with no ties to Russia.
  • Long-term Prospects: Microsoft’s deal could expand further, reflecting a trend towards significant investment in AI infrastructure.

While challenges persist—like a recent UK trial highlighting productivity issues—this investment signals a shift in how leading tech companies view AI’s potential.

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