Nvidia(NVDA.US) invests another $2 billion to boost Nebius(NBIS.US), adding another layer to the ongoing "recycling investment" bubble controversy.

Nvidia (NVDA.US) will invest $2 billion in Nebius (NBIS.US) as part of a strategic partnership for the development and construction of artificial intelligence data centers. The world’s highest market capitalization company continues to invest in companies that purchase its chips.

Nebius stated in a statement on Wednesday that this partnership will help Nebius deploy over 5 gigawatts (GW) of Nvidia systems by the end of 2030. This amount of electricity is roughly enough to power 3.8 million households.

Nvidia has been leveraging its vast resources to fund the expansion of AI infrastructure, much of which is based on its designed chips. This has drawn criticism, with claims that such “circular investment” is creating a bubble. In January this year, Nvidia announced a similar $2 billion investment in CoreWeave, a competitor of Nebius, to deploy its products.

This collaboration will build on Nebius’s existing use of Nvidia infrastructure and support its early adoption of the latest generation of chips. The two companies will jointly design, build, and manage AI data centers. Nebius stated that this partnership will enable it to build infrastructure tailored for “inference,” which is the process of running services after AI model training is completed.

Cloud service provider Nebius was previously the Dutch holding company of Russian internet giant Yandex. After selling its Russian business to a group of investors for $5.2 billion in 2024, the company rebranded as Nebius. By the end of that year, Nebius raised $700 million from a group of investors, including Nvidia.

According to a company filing shortly after the initial investment, as of December 2024, Nvidia holds approximately $33 million worth of Nebius shares.