Microsoft Corp (NASDAQ:MSFT) has agreed a contract worth as much as $19 billion with Nebius to lease computing power for its artificial intelligence operations over the next five years.
The deal underscores the intense competition for the high-performance chips required to run AI models.
Nebius, which was spun out of Russian internet group Yandex last year, said the deal was valued at $17.4 billion but could rise to $19.4 billion depending on demand.
The company will finance its new data centre in New Jersey and expand its stock of graphics processing units using proceeds from the contract alongside debt secured against it.
Shares in Nebius closed a frenetic after-hours trading session 44% higher. Its US-listed shares added about 55% shortly before Tuesday's opening bell.