Nebius’ (NBIS) nearly $3B deal to supply artificial intelligence infrastructure for Meta Platforms (META) is moving quickly, with the first phase beginning next month.
However, per the agreement, Meta has the option to extend or terminate the order if capacity is not delivered by the agreed delivery dates. The deal is currently slated to last five years.
“The GPU Services will be deployed in two tranches during December 2025 and February 2026, along with associated storage and connectivity services,” said Nebius in a Form 6-K filed with the U.S. Securities and Exchange Commission. “The Order has a total contract value of approximately $2.9 billion. Meta may also extend the term of the GPU Services and/or acquire additional services and/or capacity under the Agreement. Cash flow coming from the Agreement will be utilized to finance part of the capital expenditure associated with the Agreement.”
Meta retains the option to cancel the deal if Nebius fails to deliver the capacity by the dates agreed upon for the first and second tranches, following a grace period.
In September, Nebius formed an agreement with Microsoft (MSFT) to provide artificial intelligence infrastructure for $17.4B to $19.4B over the next five years. Nebius just delivered its first tranche of capacity to Microsoft and plans to deliver the rest throughout 2026. The full annual revenue run rate from this deal is not expected to materialize until the start of 2027. However, the Meta deployment will be completed within the next three months.
“As busy as we are with these mega deals, our main focus is still to build our own core AI cloud business,” said Nebius founder and CEO Arkady Volozh during the company’s third-quarter earnings call. “We made great progress here with AI native start-ups like Cursor, Black Forest Labs and others. The economics and the cash flow of mega deals are attractive in their own right, but they also enable us to build our core AI cloud business faster. This is our real future opportunity.”
Volozh said his company is focused on increasing capacity. The Meta agreement could have likely been larger if Nebius had more capacity available.
“Capacity today is the main bottleneck to revenue growth, and we are now working to remove this bottleneck,” he said. “As we look to 2026, we expect our contracted power to grow to 2.5 gigawatts contracted. This is up from the 1 GW, which we discussed in our previous earnings call in August.”