Shares of Nebius Group soared more than 60% in extended trading on Monday after the provider of Nvidia graphics chips for training artificial intelligence models said it's signed an agreement with Microsoft worth up to $19.4 billion over five years.

Nebius, which is based in Amsterdam, will deliver computing resources to Microsoft using a data center in New Jersey, according to a statement . Nebius changed its name from Yandex NV last year after Russian investors bought Yandex's Russian-language search engine and other assets.

Microsoft is increasingly looking to third parties to address a demand shortage for cloud infrastructure that can handle AI workloads. OpenAI, one of Microsoft's top Azure cloud customers, has been searching for additional capacity

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