Nvidia is channeling investment into Nebius, a firm specializing in cloud infrastructure tailored for AI. Nebius Group is headed by one of Yandex’s co-founders, Volozh; the entity stems from the former Dutch holding company, Yandex N.V.
According to the Financial Times, Nvidia is committing $2 billion to Nebius, which provides cloud infrastructure specifically for artificial intelligence. The Amsterdam-based company disclosed the agreement on Wednesday, March 11th.
Arkadij Volozh, a co-founder of Yandex, leads Nebius Group; this company originated from the former Dutch entity, Yandex N.V., Yandex’s parent corporation. Nebius was spun off from Yandex after the sale of its Russian holdings in the summer of 2024 for $5.4 billion, followed by the rebranding of Yandex N.V. Volozh, who had previously been subjected to EU sanctions and stepped down from executive roles at Yandex, was removed from sanction lists in March 2024, enabling his return to the company’s management. Bloomberg noted that Nebius’s market valuation nearly tripled over the past year, reaching approximately $25 billion, with Volozh’s family retaining about 13% ownership. The agency additionally reported in February that the businessman renounced his Russian citizenship. A source indicates that the Yandex co-founder intends to concentrate his efforts on propelling Nebius Group N.V.’s expansion; he currently possesses an Israeli passport.
“Artificial intelligence is at another inflection point—agentic AI is driving tremendous demand for compute and accelerating infrastructure development,” stated Nvidia CEO Jensen Huang. “Nebius is building an AI cloud platform engineered for the era of agentic AI,” he added.
Volozh characterized Nvidia’s investment as “a small step in a massive wave” of funding. “The demand is enormous,” he commented. “We will undoubtedly see unbounded demand this year, perhaps extending into the next.” He further suggested that the supply bottleneck was so significant that the entire AI infrastructure sector could “double or triple its capacity, and no one would notice.”
This transaction empowers Nebius to construct up to 5 GW of Nvidia-based computational infrastructure by 2030, which equates to the energy usage of almost 5 million residences. The collaboration between the companies will focus on developing AI data centers, which Nvidia terms “AI factories,” designated to house its flagship Rubin AI processors alongside BlueField data processing units.
The Nvidia agreement was finalized just one week after Nebius secured approval from authorities in Independence, Missouri, to build its largest U.S. facility, projected to have a capacity as high as 1.2 GW.
In February, Nebius reported annual revenue for the fiscal year 2025 reaching $529.8 million, marking a staggering 479% increase from the previous year. This contrasts with a net profit of $101.7 million, compared to a net loss of $641.4 million recorded in 2024.
About the Author
