AI infrastructure firm Nebius Group announced on Monday that it has raised $700 million in a private placement, attracting investments from Nvidia, Accel, and funds managed by Orbis Investments.
Nebius, founded in July after a $5.4 billion asset split of Russian tech giant Yandex, is accelerating efforts to build the infrastructure essential for artificial intelligence development. Arkady Volozh, Nebius’ founder and former Yandex CEO, said the funds would enhance the company’s ability to scale GPU clusters, cloud platforms, and AI development tools.
The firm has committed to investing $1 billion by mid-2025 but hinted at further expansion. Currently, Nebius leases data centre space in Kansas City, Missouri, and plans to broaden its U.S. presence, where over half its clients are based.
Nebius issued 33.3 million Class A shares at $21 each, reflecting a 3% premium to their average trading price since Nasdaq listings resumed post-asset split. The financing was oversubscribed, boosting the company’s projected annual revenue run rate for 2025 to $750 million–$1 billion, up from $500 million.
John Boynton, Nebius’ board chairman, noted the decision to halt a previously approved share buyback, citing strong investor engagement and favorable Nasdaq trading dynamics. “Shareholders seeking exits have had opportunities at higher-than-anticipated prices,” Boynton stated.
The funding positions Nebius as a key player in AI infrastructure development amid global demand for advanced computing solutions.
