Meta announced that it will spend up to $27 billion on computing capacity from the Amsterdam-based company Nebius. Shares of the so-called neocloud provider jumped 14 percent in morning trading following the news.
The agreement is divided into two parts. Nebius will first provide Meta with dedicated capacity worth $12 billion across several locations. It will be built on one of the first large-scale deployments of Nvidia's new Vera Rubin platform, featuring its latest chips designed specifically for artificial intelligence. Nebius plans to bring the first capacity online early next year.
Meta has also committed to purchasing additional computing power from Nebius's planned clusters, worth up to $15 billion over the next five years. There is a catch, however. Nebius intends to offer this capacity primarily to other customers of its cloud. Meta will purchase whatever is not sold elsewhere. This brings the total potential value of the contract to approximately $27 billion. “We are delighted to expand our significant partnership with Meta. This is another major, long-term capacity agreement that will accelerate the development and growth of our core business—our artificial intelligence cloud,” said Nebius founder and CEO Arkady Volozh.
Why is Meta seeking capacity elsewhere?
Meta is one of the so-called hyperscalers—giant technology companies currently racing to build artificial intelligence infrastructure. The company itself said that its AI-related spending this year will reach between $115 billion and $135 billion. And it is far from alone. Amazon, Alphabet, and Microsoft plan to spend approximately $700 billion combined.
But their own data centers are not enough. That is why these companies are securing scarce graphics chip capacity and electricity from specialized providers such as Nebius. Unlike major cloud companies, Nebius does not focus on a broad range of industries, but primarily on technology customers. Its U.S. competitor CoreWeave operates in a similar way.
Nebius is growing at a dizzying pace. It was established in 2022 following the restructuring of Russia's Yandex, specifically from its operations outside its domestic market, and went public on the New York Stock Exchange in 2024. Its shares gained more than 200 percent last year and are up another 35 percent this year. The Meta contract follows earlier agreements. In November, the two companies signed a $3 billion contract, while in September Nebius struck a deal with Microsoft for supplies worth up to $17.4 billion.
But this growth also has a downside. For 2025, Nebius reported revenue of around $530 million, representing a year-on-year increase of 479 percent. Its operating loss widened by 49 percent to approximately $596 million. The company expects to reach an annualized revenue run rate of between $7 billion and $9 billion by the end of this year. It left its outlook for 2026 unchanged.
A week before the Meta deal was announced, Nvidia also invested in Nebius. The chipmaker purchased a stake of roughly eight percent for $2 billion, and the two companies plan to jointly build so-called AI factories in the U.S. with capacity of up to five gigawatts by the end of the decade.
Sources: nebius.com, reuters.com, and cnbc.com
