Nvidia is betting bigger on Nebius, and investors are taking notice. Shares of the AI cloud company climbed 6% Tuesday after a regulatory filing showed Nvidia increased its ownership stake to 9.3%, deepening its commitment to one of the fastest-growing players supplying the computing infrastructure behind artificial intelligence.

The move adds to a year of remarkable momentum for the Amsterdam-based company. Nebius has become one of Europe’s leading AI-focused cloud providers, landing multibillion-dollar infrastructure agreements with major technology companies as demand for GPU capacity continues to outpace supply. The stock has gained nearly 250% over the past 12 months, pushing the company’s market value to about $46 billion as of Tuesday morning.

Nvidia’s latest disclosure comes four months after the chip giant invested $2 billion in Nebius, taking an initial stake of about 8.3% as part of a broader push into companies building the infrastructure that supports the AI economy.

The partnership goes beyond an equity investment. The two companies are working together on AI infrastructure deployment, fleet management, inference systems, AI factory design, and operational support, positioning Nebius to serve a growing list of enterprise customers racing to build AI products.

Demand has continued to build. In March, Meta signed a long-term agreement worth up to $27 billion for Nebius’ AI infrastructure, giving the company one of the largest commercial AI infrastructure contracts announced this year.

Nvidia has steadily increased its exposure to companies building AI models and the infrastructure needed to run them. The chipmaker contributed $30 billion to OpenAI’s $110 billion funding round announced in March and participated in Anthropic’s $30 billion fundraising in February. Those investments, along with its growing position in Nebius, show Nvidia is backing much more than chip sales. It is investing across the companies shaping the next generation of AI computing.

Wall Street sentiment has turned increasingly positive. Freedom Capital Markets upgraded Nebius to a Buy rating on Monday, pointing to stronger financial flexibility after the company secured $775 million through its first senior secured debt facility.

The financing is backed by deployed GPU infrastructure and contracted cash flows tied to an investment-grade customer, giving lenders confidence in the company’s long-term revenue base. Freedom Capital Markets described the transaction as a “positive catalyst” for Nebius.

Competition across AI infrastructure continues to accelerate as cloud providers race to add more computing capacity. Nvidia last year committed to deploying at least 10 gigawatts of systems for OpenAI, followed by a separate $30 billion investment tied to the company, underscoring the scale of spending flowing into AI infrastructure.

Nebius belongs to a new generation of AI cloud providers often called “neoclouds.” Unlike traditional cloud platforms that serve a broad range of enterprise workloads, companies such as CoreWeave focus on GPU-intensive computing built for training and running AI models. That specialization has made them attractive partners for hyperscalers and AI startups that need computing capacity without building massive data center networks from scratch.

Nebius has secured infrastructure agreements with hyperscalers, including Microsoft and Meta, worth billions of dollars. Those contracts have helped turn the company into one of the biggest beneficiaries of the AI infrastructure boom.

“Nebius is building an AI cloud designed for the agentic era,” Nvidia CEO Jensen Huang said in a statement. He added that the partnership will help scale Nebius to meet rising global demand for AI computing.

Nebius traces its roots to Yandex. The company was founded by former Yandex CEO Arkady Volozh, who spun off parts of the business as he rebuilt it into a global technology company focused on AI infrastructure. Today, the company sits at the center of one of the industry’s biggest investment themes, where cloud capacity has become just as valuable as the AI models it supports.

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