AI computing power arms race escalates! NVIDIA invests $2 billion in AI cloud company Nebius to jointly build artificial intelligence data centers.

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Nvidia steps in again, strategically investing $2 billion to strengthen its position in the AI infrastructure sector.

On March 11, Bloomberg reported that Nvidia will invest $2 billion in Dutch AI cloud computing company Nebius Group NV; the two parties will jointly design, build, and operate AI data centers. According to the agreement, Nebius plans to deploy more than 5 gigawatts of Nvidia systems by the end of 2030—enough to supply power to about 3.8 million households at any given time.

Boosted by this news, Nebius shares surged nearly 15% in early U.S. trading on Wednesday, and have more than doubled over the past year. The collaboration will focus on the "inference" phase—that is, the operational and service deployment phase after AI models have been trained.

Nvidia Accelerates "Circular Investment," Funds Continue to Flow to Chip Buyers

The investment in Nebius is the latest in a series of frequent moves by Nvidia. In January this year, Nvidia announced a $2 billion investment in Nebius competitor CoreWeave Inc.; last month, it participated in OpenAI’s $30 billion financing; and this week, it joined the $2 billion funding round for emerging UK cloud service provider Nscale.

A common feature of these investments is that the recipients are all major buyers of Nvidia chips. This model has drawn criticism from the public, with some believing that such “circular investments” may inflate the AI bubble. Bloomberg previously reported that the capital flows between OpenAI and Nvidia are helping to further expand the trillion-dollar AI market valuation.

After Spinning off Russian Business and Transforming to AI, Nebius Gets a $2 Billion Boost

Nebius was formerly the Dutch holding company of Russian internet giant Yandex. In 2024, the company sold its Yandex Russian business for $5.2 billion to a group of Russian investors, then renamed itself Nebius and transformed into an emerging cloud service provider focused on AI infrastructure.

By the end of the year, Nebius completed a $700 million fundraising, with Nvidia being one of the participants. According to company documents, as of December 2024, Nvidia held about $33 million worth of Nebius shares. This new $2 billion investment will significantly increase Nvidia's strategic influence within the company.

Besieged by Giants, Nvidia Heavily Supports "New Cloud" Forces

Nebius is one of the few emerging data center operators that have quickly risen thanks to the AI boom, focusing on providing customized computing infrastructure for AI model training and services such as ChatGPT. These “new cloud” operators face competition from large cloud computing giants such as Alphabet’s Google and Amazon, who are developing their own AI accelerator chips to reduce dependency on Nvidia products.

Nvidia, meanwhile, continues its financial investments to support these emerging operators and thus consolidate its core position in the AI computing supply chain. For investors, this model not only supports Nvidia's demand side, but also remains a focal point for market attention on its capital allocation strategy.

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