Microsoft strikes $19.4B AI chip deal to boost computing power
Microsoft just signed a massive $19.4 billion deal with Nebius Group NV to level up its AI infrastructure.
This gives Microsoft access to over 100,000 NVIDIA GB300 chips—think of these as the brains behind smarter AI tools and assistants you might use every day.
The move helps Microsoft get around the global shortage of data center space by tapping into Nebius's resources instead of building everything from scratch.
Microsoft is still building its own data centers
By teaming up with cloud companies like CoreWeave, Nscale, and Lambda, Microsoft can quickly boost its AI power without waiting years for new server farms to be built.
It's a flexible way to stay ahead in the AI race while keeping costs in check.
At the same time, Microsoft is still investing big in its own data centers (like their huge Wisconsin project).
After the news dropped, Nebius shares jumped 5.5% in New York trading.