Nvidia Lifts Nebius Stake to 9.3% With $3.8 Billion Share Increase
Updated
Updated · The Motley Fool · Jul 21
Nvidia Lifts Nebius Stake to 9.3% With $3.8 Billion Share Increase
3 articles · Updated · The Motley Fool · Jul 21
Summary
More than 21 million added shares lifted Nvidia’s Nebius holding to roughly 9.3%, making the AI cloud company about 12% of Nvidia’s disclosed investment portfolio.
Nebius drew the bigger bet as its AI-centric cloud business accelerates: first-quarter revenue jumped 684% to $399 million and its core AI services run rate reached $1.92 billion.
A recent SEC filing said Nvidia cannot sell the newly acquired shares before Sept. 11, 2026, underscoring that the move is a longer-term commitment rather than a trading position.
Jensen Huang had already called Nebius a “world-class AI cloud,” and the stake increase aligns with forecasts that neocloud revenue will expand from $25 billion in 2025 to $400 billion by 2031.
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Nvidia’s $2 Billion Bet: How a 9.3% Stake is Supercharging Nebius’s AI Compute Dominance
Overview
Nvidia’s disclosure of its 9.3% stake in Nebius, structured through both direct share acquisition and a pre-funded warrant, immediately boosted market confidence and sent Nebius shares up nearly 7%. This strategic investment, valuing Nebius at $2 billion, signals Nvidia’s strong belief in Nebius’s growth and positions both companies for mutual benefit. The market’s swift, positive reaction highlights investor enthusiasm for the partnership, as Nebius gains a powerful ally and Nvidia stands to benefit from Nebius’s advancements in AI infrastructure. This move sets the stage for accelerated growth and deeper collaboration in the competitive AI landscape.