MSFT: Microsoft Inks Multi-Billion Nebius Deal to Secure 100,000 Nvidia AI Chips

Oct 2 - Microsoft MSFT has struck a major agreement with neocloud provider Nebius NBIS to secure computing power for its internal AI teams, according to Bloomberg.

The deal gives Microsoft access to more than 100,000 of Nvidia's (NVDA) newest GB300 chips. It follows a previously announced $17.4 billion, five-year partnership with Nebius, which could climb to $19.4 billion if Microsoft opts for extra capacity.

By renting servers from smaller infrastructure providers, Microsoft can ease the strain on its own data centers while redirecting capacity toward cloud customers and projects with OpenAI. Microsoft has already committed over $33 billion to similar neocloud agreements, including partnerships with CoreWeave CRWV, Nscale, and Lambda.

Executives say this approach helps the company navigate chip shortages and the immense power demands of generative AI. Rivals Amazon (AMZN) and Alphabet GOOGL also rent some external capacity, but not at Microsoft's scale. With GitHub Copilot and ChatGPT adoption surging, Microsoft aims to stay ahead by aggressively securing the com