Meta and Nebius signed a massive $27 billion deal to boost the company's AI computing power over the next five years.
Nebius, a Dutch cloud provider, saw its stock rise 14 percent in early trading Monday following the deal's announcement, CNBC reported.
The network reported that Nebius will provide $12 billion of dedicated capacity at different locations. The deal includes large-scale deployments of Nvidia's latest AI-specialist Vera Rubin chips.
Additionally, Meta has committed to purchase additional available compute capacity from Nebius, worth up $15 billion over five years.
"We are pleased to expand our significant partnership with Meta as part of securing more large, long-term capacity contracts to accelerate the build-out and growth of our core AI cloud business. We will continue to deliver," Arkady Volozh, founder and CEO of Nebius said.
CNBC described Meta as a "hyperscaler" in AI and one of a group of companies making massive investments in AI technology. The network reported that Meta's AI capital expenditure was expected to reach between $115 billion and $135 billion this year. In total, Meta, Amazon, Alphabet, and Microsoft are expected to invest $700 billion in AI-related projects.
