Nebius, a rising AI compute leader in Europe, has emerged as a new player in the tech industry. The company was born out of the ashes of Yandex, a Russian giant once compared to Google. Nebius, with 1,300 employees and $2.5 billion in capital, is not your typical startup. Despite its size, Nebius is essentially starting from scratch as it ventures into building AI infrastructure that requires significant resources, manpower, and capital.
Arkady Volozh, the former CEO of Yandex, was forced out of the company in 2022 due to sanctions imposed by the European Union following Russia’s invasion of Ukraine. However, Volozh was later removed from the EU sanctions list, allowing him to return as the CEO of Yandex’s new iteration, Nebius. This new venture operates entirely outside of Russia, with its team and data centers located in various countries across Europe.
The transition from Yandex to Nebius was complex, involving the sale of Russian assets valued at $5.4 billion to a Russian consortium and a rebranding of the company to Nebius AI. Nebius is now focused on establishing itself as a major player in the AI infrastructure market in Europe, competing with big tech companies and dedicated GPU-as-a-service startups.
One of Nebius’ key strengths is its experienced team of engineers, many of whom transitioned from Yandex and have a background in building compute infrastructure at scale. The company is rapidly expanding its capacity, with plans to triple the size of its data center in Finland and build additional facilities across Europe in the coming years. Nebius also benefits from a strong partnership with Nvidia, a leading GPU manufacturer, which provides essential hardware for its operations.
Despite its massive size and capital, Nebius is aiming to regain its public status and become a prominent player in the AI infrastructure market. Volozh believes that being a public company will make it easier to raise capital and attract investors who want exposure to the growing AI industry. With a focus on AI infrastructure, Nebius is positioned to capitalize on the increasing demand for AI compute services in the tech sector.
The company’s geographical spread, with hubs in Amsterdam, Israel, the U.S., and Belgrade, reflects its diverse workforce and the challenges it faced during the transition from Yandex to Nebius. The relocation of employees from Russia to other countries, such as Israel and the Netherlands, was a significant undertaking that required careful planning and coordination. Despite the hurdles, Nebius has successfully established itself as a new player in the AI infrastructure market, with a focus on innovation and growth.
Overall, Nebius represents a fresh start for Arkady Volozh and his team, as they embark on a new journey in the tech industry. With its focus on AI infrastructure, experienced team, and strategic partnerships, Nebius is poised to make a mark in Europe’s evolving tech landscape.
