Microsoft has signed a deal with Nebius, the firm that spun out of Russian internet giant Yandex last year, to get artificial intelligence (AI) cloud computing power for the next seven years that could be worth nearly $20 billion.
The Microsoft-Nebius deal is worth $17.4 billion and will run till 2031 but the terms allow Microsoft to buy additional services capacity that could take the total value to about $19.4 billion, according to Reuters.
Under the deal, Nebius said it will provide Microsoft with dedicated capacity from a new data centre in Vineland, New Jersey, as per Bloomberg.
The deal has come at a time when Microsoft has ramped up capital expenditure to record levels in recent years to build new data centres and equip them with servers and networking equipment. This has come as the demand for AI applications and cloud has continued to surge.
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