Meta Spends Another $27B on AI Infrastructure With Nebius

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The Facebook and Instagram parent company on Monday agreed to a new multi-billion-dollar deal with AI infrastructure supplier Nebius.

Under the terms of the five-year agreement, revealed on Monday, the Amsterdam-based neocloud vendor will supply the social media giant $12 billion of dedicated capacity across a number of locations.

This will include what Nebius said will be one of the first large-scale deployments of Nvidia’s Vera Rubin platform, with delivery set to start next year.

In addition, Meta has committed to buying available compute capacity across specific Nebius clusters over the next five years, to a total value of $15 billion.

“We are pleased to expand our significant partnership with Meta as part of securing more large, long-term capacity contracts to accelerate the build-out and growth of our core AI cloud business," Nebius CEO Arkazy Volozh said in a release.

Nebius stock soared 15% in midday trading on the news.

Related:Nebius to Build One of Europe’s Largest AI Factories in Finland

The deal came less than a week after AI chip giant Nvidia revealed that it was investing $2 billion in Nebius.

The agreement follows a previous deal Nebius brokered with Meta last November, which was valued at $3 billion. That development came quickly after a separate deal worth up to $19.4 billion for Nebius to deliver GPU capacity to Microsoft for a new data center in Vineland, New Jersey.

For Meta, the investment is another major outlay, as the fierce race to secure AI infrastructure shows no sign of slowing.

In late February, Meta revealed a major deal with Nvidia to use the chip giant’s Grace central processing units, as well as Blackwell and next-generation Vera Rubin GPUs, in its data centers.

The financial terms of the deal were not disclosed, but were said to extend to tens of billions of dollars. CEO Mark Zuckerberg had previously suggested that Meta would spend up to $135 billion on AI in 2026.

Amid this dramatic level of investment, it is perhaps no surprise that rumors are now gaining traction that significant job cuts are on the horizon. Three separate sources told Reuters that sweeping layoffs could see about 20%of Meta’s workforce lose their jobs -- amounting to about 16,000 employees.

Meta has not commented on the speculation.

About the Author

Contributing Writer

Graham Hope has worked in automotive journalism in the U.K. for 26 years, including spells as editor of leading consumer news website and weekly Auto Express and respected buying guide CarBuyer.