Nebius Secures $700M Funding for U.S. Expansion
Nebius, the European AI infrastructure company, formerly known as Yandex N.V., has recently announced a massive financial boost of $700 million to fuel its expansion into the U.S. market. The funding was a result of a private placement that saw Nebius issue 33,333,334 Class A shares at $21 per share, marking a 3% premium on the average price since trading resumed in October.
New Investors and Plans
The financing involved several prominent investors, with only three revealed so far, including GPU giant Nvidia, Silicon Valley VC firm Accel, and investment management firm Orbis. The company plans to offer a comprehensive “full stack” infrastructure for AI companies, covering data centers, GPUs, and related services. Nebius has also diversified its business portfolio, including ventures like Avride, Toloka, and TripleTen.
Capital Intensive Expansion
Nebius is pursuing a hybrid growth strategy, combining co-location facilities and building its sites from scratch, which requires significant capital investment. Despite competition from cloud hyperscalers and private players like CoreWeave, Nebius remains focused on expanding its data center footprint in the U.S. and Europe.
Future Expansion and Financial Outlook
With a substantial financial position of around $3 billion, Nebius is looking to raise additional capital for rapid growth. The company expects to achieve an annualized run rate of $750 million to $1 billion by the end of 2025, surpassing its previous guidance. Accel partner Matt Weigand will also join Nebius’s board of directors, enhancing the company’s strategic direction.
In light of these developments, Nebius is poised for significant growth and innovation in the AI infrastructure space, leveraging its newfound financial strength and strategic partnerships to drive success in the competitive market landscape.
I remember when I first encountered Nebius. As a young graduate exploring opportunities in tech, their innovative approach to AI infrastructure caught my attention. It’s inspiring to see how they have evolved over the years, overcoming challenges and emerging as a key player in the industry. The recent funding announcement signifies a new chapter for Nebius, and I am excited to witness their continued growth and impact on the tech world.
