Microsoft Bets $33 Billion on Neoclouds to Ease AI Crunch (1)

Microsoft Corp.’sdeal with neocloud company Nebius Group NVwill provide computing power to internal teams creating large language models and a consumer AI assistant, according to people familiar with the situation.

The arrangement, which is worth as much as $19.4 billion, sparked a rally in Nebius shares when it was outlined Sept. 8, but the announcement was short on specifics. As part of the deal, Microsoft will get access to more than 100,000 of Nvidia Corp.’s latest GB300 chips, said the people, who requested anonymity to discuss an internal matter.

The strategy is aimed at coping with a shortage ...