The chip giant's latest investment sent Nebius shares up 14% as Nvidia continues its aggressive expansion into AI infrastructure partnerships.
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Nvidia announced a $2 billion investment in Nebius, an AI cloud infrastructure company, sending the firm's stock surging 14% in early trading. The partnership represents Nvidia's continued push to expand its reach beyond chip manufacturing into the broader AI ecosystem. Nebius specializes in cloud computing services optimized for artificial intelligence workloads.
The investment follows Nvidia's recent pattern of strategic partnerships as the company seeks to capitalize on the AI boom. Last week, Nvidia unveiled similar $2 billion investments in optical component makers Lumentum and Coherent, signaling a broader strategy to secure critical supply chain partners. These moves come as demand for AI infrastructure continues to outpace supply across the industry.
Nvidia's market capitalization has grown dramatically over the past two years, reaching over $2 trillion as AI adoption accelerates. The company's data center revenue hit record levels in recent quarters, driven primarily by demand for its H100 and newer AI training chips. Nebius operates data centers across multiple regions and has been expanding its AI-focused services.
The partnership is expected to enhance Nvidia's ability to offer end-to-end AI solutions to enterprise customers while providing Nebius with significant capital for expansion. Industry analysts view these investments as Nvidia's attempt to build a more integrated AI ecosystem and reduce dependence on third-party cloud providers. The deal structure and timeline for the investment were not immediately disclosed.