Microsoft and Nebius Tie The Knot of $17.4 billion

Microsoft has recently signed a jaw-dropping $17.4 billion commitment with Nebius Group, the Amsterdam-based technology company, renowned for providing Artificial Intelligence infrastructure. It’s clear cut evidence that Microsoft doesn’t wanna take any risk and go all in to secure the coveted AI infrastructure of the Nebius Group to stay ahead in this increasingly fragmented tech landscape. 

A Hedge For Hegemony

The deal exposes a troubling reality that tech giants are monopolizing or rather colonizing the computing resources. Why so? To lockout the smaller players within the field and instill a fabricated scarcity. In likewise fashion, Microsoft has also committed around $20 billion to secure Nvidia GPU access through 2031.

It’s like Microsoft thinks that The Winter is Coming, a winter of AI that would have everyone on the lookout for AI infrastructure and then Microsoft would feast on this ahead of the time Hoarding of coveted AI infrastructure. A surge of 45% for Nebius Group unveils how financially monopolized the digital future has become. The exclusive access to computational power determines who gets to participate in this evolution of AI. 

Geopolitical Consideration

Microsoft’s choice to centre its headquarter for AI endeavours, at Vineland, New Jersey in Nebius’ data centres is not an eny meeny miny moe choice. Microsoft was a permanent buyer of Nvidia’s chip. But Nvidia has been under hot waters recently, be it the Chinese scrutiny over H20 AI chip security allegations or security concerns or the threat of stocks decline as a result of the 125% tariff threat. This sobered Microsoft into diversifying its AI infrastructure resources and vendors. Consequently, with this deal, Microsoft is protecting itself from relying on a fragile chip supply chain. 

In other words, Microsoft is playing defense as much as offense. It’s building the capacity to outperform the competitors, but also taking precautions that if in any near future the tensions flare up then it can stand such testing times with its varied vendors of GPU computational capacity. 

AI For Democratizing The Access?

Right from its inception, the tallest claims we have heard so far from all the tech-giants fueling this race of Ai, is of, democratising the knowledge, enabling the access, and empowering those sitting with a basic smart phone as much as an advanced tech user. But, such deals really posit a sobering reality; No such equality is possible in this age of capitalism that runs on the principle of free market.

With Microsoft clawing on massive GPU farms, smaller AI startups are left struggling for compute power. Does this democratize the AI revolution or further broaden the divide? A divide where tech-giants with bottom-less resources of money have unlimited access and everyone else left to fight for the leftovers.  

The Gatekeepers

Don’t be naive and think of this like just another business deal between the two giants. This is a control over the resources that would amplify human intelligence. As AI is becoming as essential as electricity and water, such exclusive access would determine who can enhance their capabilities and fade out in the darkness.

Make no mistake! Companies like Nebuis, CoreWeave, and Lambda aren’t just cloud providers; they’re becoming the gatekeepers of knowledge and innovation. The real power lies not in the AI itself, but in who gets to decide who can use it.