Nvidia is pouring $2 billion into Nebius, an Amsterdam-based AI cloud provider, marking another massive investment in its ecosystem. This follows Nvidia's recent $significant investment in Thinking Machines, a Silicon Valley AI lab, and its participation in Nscale's $2bn fundraising. The chip giant's strategy involves funding its own customers, raising industry concerns about circular financing. Jensen Huang declared AI is at an inflection point, necessitating massive compute infrastructure.

Nebius, formed from Yandex's operations, has already secured a $20bn Microsoft cloud deal and saw its stock surge 400% since its 2024 IPO. Up to 5GW of Nvidia-based infrastructure is planned by 2030, rivaling the power of nearly 5 million homes. The expanded alliance focuses on co-developing 'AI factories' powered by Nvidia's Rubin processors and BlueField systems.