Nebius Group (NBIS) shares soared 47% in pre-market trading after the company said it signed an agreement to supply Microsoft (MSFT) with graphic processing units (GPUs) in a deal Reuters valued at $17.4 billion over five years.
The contract is worth more than the Amsterdam-based company’s entire market capitalization, currently $15.29 billion. According to Reuters, Microsoft may increase the contract value to $19.4 billion by acquiring additional services capacity.
Shares of other companies involved in artificial intelligence (AI) computing, also advanced. Cipher Mining (CIFR) and IREN (IREN) both climbed 9% on speculation of further AI infrastructure partnerships, echoing similar moves seen earlier this year with CoreWeave (CRWV) and TerraWulf (WULF).
Nebius provides Nvidia-powered GPUs, cloud services and AI developer tools built on its proprietary hardware and software.