Nebius stock rose 7% in premarket trading Tuesday after a filing showed Nvidia holds roughly 22.26 million shares in the neocloud firm
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Nebius stock climbed 7% in premarket trading on Tuesday after Nvidia $NVDA disclosed a 9.3% stake in the Amsterdam-based AI cloud company. According to a filing released Monday, the position totals approximately 22.26 million shares, a figure that incorporates shares tied to a warrant Nvidia received through its $2 billion investment in the company.
The filing noted that Nvidia cannot exercise the warrant until after September 11. Nebius stock had already risen 3% in aftermarket trade Monday after the disclosure.
Under the terms of the deal, announced earlier this year, the two companies are working together across areas such as AI infrastructure deployment, fleet management, inference, and AI factory design and support. Nebius, which was spun off from Russian search engine firm Yandex, is listed on the Nasdaq $NDAQ and has a market cap of $46 billion as of Tuesday morning.
Nebius is also a customer of Nvidia's chips. Nebius has set a goal of reaching more than 5 gigawatts of total computing capacity before the end of 2030, according to Investing.com. Nebius and CoreWeave both fall into the category of neocloud companies — data center operators whose business is built around serving AI workloads.
Nebius and Nvidia have been approached for comment, according to CNBC.
In March, Meta $META signed a long-term agreement to spend up to $27 billion on Nebius' AI infrastructure, according to CNBC. Last week, Nebius said it had raised $775 million in its first senior secured debt facility, backed by deployed GPU infrastructure and contracted cash flows from an investment-grade customer.
Freedom Capital Markets upgraded Nebius to a buy rating on Monday, calling the debt raise a "positive catalyst" for the company.
Nvidia has deployed similar-sized investments across a range of firms, including a separate $2 billion deal with semiconductor company Marvell Technology, as well as Synopsys $SNPS, CoreWeave, Coherent, and Lumentum. Nvidia put $30 billion into OpenAI's $110 billion round announced in March and also took part in Anthropic's $30 billion fundraise the previous month.
Some analysts and investors have flagged what Goldman Sachs $GS has called "the increasing circularity of the AI ecosystem," in which a concentrated group of chip companies, cloud providers, and AI labs finance one another's buildouts. Nvidia has told analysts that its cross-investments are small relative to its overall revenue and that the companies it backs earn the majority of their revenue from outside customers.
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