NVIDIA (NVDA) has announced a $2 billion investment in Nebius (NBIS) as part of a strategic partnership focused on developing and constructing artificial intelligence data centers. The world's highest-valued company by market capitalization continues to allocate capital to firms that purchase its semiconductors.
In a statement released Wednesday, Nebius indicated that the collaboration will assist the company in deploying over 5 gigawatts (GW) of NVIDIA systems by the end of 2030. This amount of power is roughly sufficient to supply 3.8 million households.
NVIDIA has been leveraging its substantial resources to finance the expansion of AI infrastructure, most of which relies on chips designed by NVIDIA. This strategy has drawn criticism, with some contending that such "circular investments" are contributing to a market bubble. Earlier in January, NVIDIA disclosed a similar $2 billion investment in CoreWeave, a competitor to Nebius, for deploying its products.
The new partnership will build upon Nebius's existing utilization of NVIDIA infrastructure and support its early adoption of the latest generation chips. The two companies will jointly design, construct, and operate AI data centers.
Nebius stated that the partnership will enable it to build infrastructure specifically customized for "inference," which is the process of running services after an AI model has completed its training. The cloud service provider was previously the Dutch holding company for Russian internet giant Yandex. Following the $5.2 billion sale of its Russian operations to a consortium of Russian investors in 2024, the company rebranded as Nebius. Later that year, Nebius secured $700 million in funding from a group of investors that included NVIDIA.
According to a corporate filing shortly after the initial investment, NVIDIA held approximately $33 million worth of Nebius shares as of December 2024.
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