Meta Spends $270 Billion on Nebius AI Computing Power to Compete with OpenAI and Google

Meta announced it will pay up to $270 billion over five years to cloud service provider Nebius Group NV for access to cutting-edge AI infrastructure, competing fiercely with rivals like OpenAI and Google. This is one of Meta's largest single contracts, highlighting its urgent need for AI computing power.

Nebius will provide Meta with $120 billion in exclusive computing power starting early 2027, with an optional additional $150 billion. Nebius' pre-market stock rose 15% and Meta's by 2.8% following the news.

Meta has prioritized AI as its core strategy, signing multi-billion dollar deals with Nvidia and AMD earlier this year while developing its own chips. CEO Mark Zuckerberg previously stated that Meta will invest $600 billion in U.S. infrastructure projects by 2028 to prepare for AI service growth.