$27 Billion Poured Into AI Computing. Meta Bets on Nebius Again as Shares Surge 16% Pre-Market.

TradingKey - During Monday's pre-market trading session US Eastern Time, reports indicated that tech giant Meta (META.US) plans to, over the next five years, partner with Nebius (NBIS.US) to launch a large-scale AI collaboration, with total spending potentially reaching up to $27 billion. Driven by the news, Nebius's stock price surged more than 16% at one point.

It should be noted that Nvidia (NVDA.US) announced a $2 billion investment in Nebius last week, a move that drove Nebius's stock price up 16% in a single day.

According to Bloomberg, the two parties are moving forward with a long-term AI computing power cooperation agreement. Under the framework of the agreement, Nebius will provide Meta with high-performance AI computing infrastructure, including GPU computing power, data center services, and related cloud computing resources, to support Meta's continued investment in the fields of generative AI and large language models. In this investment, Meta intends to spend no more than $27 billion, marking another massive bet on Nebius following the $3 billion partnership reached between the two parties last year.

The agreement is one of the largest single contracts Meta has signed to date, highlighting its determination to expand its AI strategy. The company has made AI a core priority and is currently facing intense competition from rivals such as OpenAI and Google. Meta stated that diversifying its partners and technology stack is a key component of its strategy to build a "more adaptive and flexible infrastructure."

In recent years, with the explosion of demand for generative AI, tech companies' demand for computing resources has grown rapidly. Several tech giants, including Meta, are accelerating the construction and outsourcing of AI data centers to ensure that model training and inference capabilities can keep pace with the speed of product expansion.

For Nebius, this partnership is also seen as an important validation of the company's commercialization capabilities. As a rapidly expanding AI infrastructure provider, Nebius has been continuously expanding its data center footprint and increasing investment in high-performance GPU clusters in recent years. If the final scale of the collaboration nears the upper end of expectations, the project is expected to become one of the company's most important revenue sources for years to come.

Investors reacted positively to this. The market believes that large tech companies locking in long-term computing supplies signifies that the AI infrastructure industry is entering a new, order-driven phase. Similar long-term cooperation agreements not only enhance the revenue visibility of the companies involved but could also drive up valuation levels across the entire AI computing power supply chain.

Against the backdrop of escalating competition in generative AI, large tech companies are investing in AI infrastructure construction on an unprecedented scale.