Nvidia disclosed this week that it beneficially owns 9.3% of Nebius Group, an AI cloud infrastructure provider, in a Schedule 13G covering about 22.3 million shares. Nebius shares jumped nearly 19% on Tuesday, to close at $217.09. However, only about 1.2 million of the shares are common stock Nvidia holds outright; the rest comes from a pre-funded warrant Nvidia bought with its previously announced $2 billion investment in Nebius, at an exercise price of $0.0001 a share. Nvidia cannot exercise the warrant or sell the shares before Sept. 11. The Schedule 13G is a passive filing, signaling Nvidia is not seeking control. Nebius buys enormous quantities of graphics processing units, overwhelmingly Nvidia's, and turns them into rentable AI computing capacity. Nvidia taking equity deepens a loop where Nebius gets capital and credibility, and Nvidia strengthens a fast-growing buyer of its chips while collecting a slice of the upside.