Nebius enters multi-billion commercial agreement with Microsoft

On September 8, 2025, Nebius, Inc., a wholly owned subsidiary of Nebius Group N.V. (NBIS), entered into a commercial agreement with Microsoft (MSFT), pursuant to which the company will provide Microsoft access to dedicated GPU infrastructure capacity in tranches at its new data center in Vineland, New Jersey over a five-year term. The GPU Services will be deployed in several tranches during 2025 and 2026. Subject to the satisfaction of the deployment and availability of the GPU Services, the total contract value is about $17.4B through 2031. Microsoft may also acquire additional services and/or capacity under the Agreement, which would increase the total contract value to about $19.4B. Cash flow coming from the Agreement will be utilized to finance part of the capital expenditure associated with the Agreement. In the event that, following a grace period, company fails to meet agreed delivery dates for a GPU Service and the company cannot provide alternative capacity, Microsoft has the right to terminate that GPU Service. Either party may terminate the Agreement for cause due to the other party’s material breach (if not remedied within 60 days); or (ii) if the other party ceases doing business, terminates its existence, dissolves or liquidates, or proceedings are instituted by or against it under any bankruptcy or insolvency law (which proceedings are not dismissed within 30 days), provided that such right of termination shall not arise where a party has entered into Chapter 11 Bankruptcy and is undertaking reorganization or transfer activities in connection with such Chapter 11 Bankruptcy, including the transfer of the Agreement to a solvent entity.