Shares of Nebius Group (NASDAQ:NBIS) surged on Monday after the company announced that Meta Platforms Inc. (NASDAQ:META) had agreed to spend up to $27 billion over the next five years for access to AI infrastructure.
Nebius stock climbed roughly 15% by 06:22 ET, while Meta shares gained close to 3%.
According to a company statement, the Amsterdam-listed cloud infrastructure provider will deliver $12 billion in dedicated computing capacity to Meta starting in early 2027. Meta has also committed to purchasing up to $15 billion in additional capacity that Nebius is developing for other customers.
The agreement represents one of the largest infrastructure contracts Meta has signed as it expands investment in the computing resources required to support its artificial intelligence initiatives. The companies already maintain a working relationship, with Meta previously entering into a separate $3 billion deal with Nebius last year.
“We are pleased to expand our significant partnership with Meta as part of securing more large, long-term capacity contracts to accelerate the build-out and growth of our core AI cloud business. We will continue to deliver,” Arkady Volozh, founder and CEO of Nebius, said in a statement.
The announcement follows news last week that Nvidia plans to invest $2 billion in the Dutch-based company as part of a strategic partnership focused on building AI data centers. Nebius said the funding will support deployment of more than 5 gigawatts of Nvidia-powered systems by the end of the decade.
Nebius is part of a growing group of so-called “neocloud” providers constructing data centers specifically designed to train artificial intelligence models and operate advanced AI applications such as ChatGPT. Nvidia has increasingly supported these firms as they compete with major cloud providers like Alphabet’s Google and Amazon, which are also developing their own AI-focused processors.
Volozh noted that Nebius relies primarily on Nvidia chips in its infrastructure and described the new investment as a relatively small component of the company’s broader spending plans. Nebius expects capital expenditures of between $16 billion and $20 billion this year.
The agreement also comes as Meta significantly increases its own spending on AI infrastructure. Major technology companies, including Meta and its industry peers, are expected to invest around $650 billion in 2026 to build data centers and acquire equipment needed for AI services.
Meta has made artificial intelligence its top strategic priority and has already signed multi-billion-dollar infrastructure deals with Nvidia and Advanced Micro Devices this year, while also developing its own custom chips.
Chief Executive Mark Zuckerberg said last year that Meta plans to invest $600 billion in U.S. infrastructure projects by 2028, with funding largely coming from its advertising profits as well as external financing.
Meanwhile, Reuters reported over the weekend that Meta is considering large-scale layoffs that could affect 20% or more of its workforce as the company looks to offset the rising costs of AI infrastructure and improve efficiency through AI-assisted operations. The report said the timing and scale of any potential cuts have not yet been finalized.