Nvidia Discloses 9.3% Stake in AI Cloud Provider Nebius

Nvidia has disclosed a 9.3% ownership position in Nebius, an Amsterdam-based AI cloud infrastructure provider, sending the company's shares up 7% in premarket trading Tuesday.

The stake comprises approximately 22.26 million shares and includes warrants tied to a $2 billion investment Nvidia made in the company, according to a regulatory filing released Monday. The chipmaker cannot exercise those warrants until after September 11.

The Nebius-Nvidia Partnership

The two companies are collaborating across multiple technical domains, including AI infrastructure deployment, fleet management, inference operations, and AI factory design and support. Nebius operates as a customer of Nvidia's GPU chips and has set an ambitious target of reaching more than 5 gigawatts of total computing capacity by the end of 2030.

Nebius was spun off from Russian search engine company Yandex and now trades on the Nasdaq with a market capitalization of $46 billion as of Tuesday morning. The company falls into the neocloud category—data center operators whose business models center on serving AI workloads rather than general-purpose cloud computing.

Major Customer Commitments

In March, Meta signed a long-term agreement to spend up to $27 billion on Nebius' AI infrastructure, according to CNBC. Last week, the company announced 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 Monday, citing the debt raise as a positive catalyst.

Nvidia's Broader Investment Strategy

The Nebius investment represents one piece of Nvidia's extensive portfolio of strategic stakes across the AI ecosystem. The chipmaker has deployed similar-sized investments in semiconductor company Marvell Technology, as well as Synopsys, CoreWeave, Coherent, and Lumentum. Nvidia also participated in OpenAI's $110 billion funding round in March with a $30 billion commitment and joined Anthropic's $30 billion fundraise the previous month.

Why It Matters

Nvidia's investment pattern highlights what Goldman Sachs has termed "the increasing circularity of the AI ecosystem"—a concentrated network where chip companies, cloud providers, and AI labs finance each other's expansion. This interconnected funding structure raises questions about the sustainability and independence of AI infrastructure buildouts. Nvidia has responded to such concerns by noting that its cross-investments remain small relative to overall revenue and that portfolio companies generate most of their income from external customers rather than internal ecosystem transactions.

The details were first reported by CNBC and Investing.com.