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Nvidia Invests $2B in AI Cloud Nebius
12 Mar
Summary
- Nvidia invests $2 billion in AI cloud firm Nebius.
- Nebius to deploy over 5 gigawatts of data center capacity.
- This investment highlights Nvidia's focus on AI infrastructure.
Nvidia is injecting $2 billion into Nebius, an artificial intelligence cloud firm, as part of its ongoing strategy to bolster the AI sector. This significant investment, disclosed via an SEC filing on Wednesday, will grant Nvidia an approximate 8.3% stake in Nebius. The deal emphasizes Nvidia's expanding role in funding AI companies and data center development.
Nebius, which is a customer of Nvidia, has committed to deploying over 5 gigawatts of data center capacity by the close of 2030. This ambitious expansion is designed to cater to the escalating global demand for AI capabilities. Nebius reported a substantial increase in capital expenditure in the December quarter, nearly quintupling from the previous year to $2.1 billion, as it aggressively pursues capacity expansion.
The investment aligns with Nvidia's broader initiative to deepen its involvement in the AI ecosystem. The company has previously made substantial commitments, including a significant investment in OpenAI and deals with other 'neocloud' firms. These specialized cloud providers focus on AI technology and offer tailored infrastructure solutions for tech customers, differentiating themselves from larger, more general cloud service providers.
