Microsoft’s AI infrastructure is getting a $33 billion boost right now through deals with CoreWeave and Nebius, two specialized Neocloud providers. The tech giant is spending at least $10 billion with CoreWeave and up to $19.4 billion with Nebius to secure computing capacity for its artificial intelligence operations. These AI cloud deals are addressing Microsoft’s urgent need for GPU resources as demand for AI services continues to surge way beyond what’s currently available.
Microsoft AI Infrastructure: CoreWeave, Nebius & Neocloud Deals
CoreWeave Stock Benefits from $10 Billion Microsoft Deal
Microsoft AI infrastructure expansion is relying heavily on CoreWeave right now, which provides Nvidia GPUs for OpenAI training along with internal AI workloads. The company went public earlier this year, and CoreWeave stock has been surging on the back of these commitments. CoreWeave focuses exclusively on GPU-accelerated computing, which allows Microsoft to actually access capacity faster than building its own data centers.
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Nebius Stock Gets Larger Share with $19.4 Billion Commitment
The Nebius deal actually represents the bigger portion of Microsoft’s Neocloud spending. Nebius stock, which emerged from Yandex’s international operations, is being used for Microsoft AI infrastructure supporting internal development. At the time of writing, the $19.4 billion commitment makes this one of the largest AI cloud deals announced this year, and it reflects Microsoft’s strategy to diversify its computing supply chain even further.
Why Neocloud Providers Matter for Microsoft AI Infrastructure
These Neocloud providers specialize in AI workloads rather than offering some broad cloud services. This focus allows them to deploy resources quickly and potentially offer better economics for specific use cases. Microsoft’s partnerships were actually driven by capacity constraints in Azure, as building new data centers takes years while AI cloud deals with CoreWeave and Nebius provide immediate access to what’s needed.
Also Read: Nebius Stock Soars 60% After $19B Microsoft AI Deal Confirmed
The agreements validate the business model of specialized providers even more. Both CoreWeave stock and Nebius stock face execution risks around scaling infrastructure and managing capital expenditures, but Microsoft’s multi-billion dollar commitments are providing revenue visibility that appeals to investors who are monitoring these opportunities right now.