Nvidia Invests $2 Billion in AI Cloud Firm Nebius

Nvidia announced on Wednesday a $2 billion investment in artificial intelligence cloud company Nebius, expanding its portfolio of investments in AI firms and data center infrastructure. This investment, disclosed on March 11, follows Nvidia's strategy to bolster the AI ecosystem and data center capacity.

Nebius, an Amsterdam-based company whose U.S.-listed shares rose over 10% in premarket trading following the announcement, plans to deploy more than 5 gigawatts of data center capacity by the end of 2030. This capacity is equivalent to the power needs of over 4 million U.S. households. Nebius is a customer of Nvidia and has secured significant deals, including a $17 billion agreement with Microsoft and a $3 billion deal with Meta Platforms.

This investment aligns with Nvidia's broader strategy of supporting "neocloud" firms that specialize in providing AI infrastructure to hyperscalers. Last year, Nvidia committed to deploying at least 10 gigawatts of its systems for OpenAI and subsequently announced a $30 billion investment in the startup. Nebius reported a capital expenditure increase to $2.1 billion in the December quarter from $416 million in the prior year, indicating its focus on capacity expansion.