Nvidia Corp announced plans to invest $2 billion in Nebius, a cloud computing company specializing in artificial intelligence infrastructure and data center operations.

The investment represents a significant commitment by the chip giant to expand its presence in the AI cloud services market. Nebius focuses on providing AI-optimized cloud infrastructure and data center solutions to businesses looking to deploy artificial intelligence applications.

Following the investment announcement, Nebius shares surged 10% in trading as investors responded positively to the partnership with the leading AI chip manufacturer. The stock movement reflected market confidence in the strategic value of Nvidia's backing.

The deal aligns with Nvidia's broader strategy of investing in companies across the AI ecosystem beyond its core semiconductor business. As demand for AI computing infrastructure continues to grow, cloud service providers like Nebius have become increasingly important partners for hardware manufacturers.

Neither company immediately provided details about the specific terms of the investment or how the funds will be utilized. The partnership is expected to strengthen Nebius's position in the competitive AI cloud computing market while expanding Nvidia's reach into cloud services.