Nebius raises $1 billion to invest in AI infrastructure in Europe
Nickie Louise
Posted On September 25, 2024
Nebius Group, an Amsterdam-based company that emerged from the split of Russian tech giant Yandex, said on Wednesday it plans to invest over $1 billion into AI infrastructure in Europe by mid-2025.
In an announcement, Nebius founder and CEO Arkady Volozh stated that the company now operates in a new industry that demands both advanced technology and substantial capital. He noted that their data center in Finland already offers high-performance computing, tools, and services to AI developers worldwide.
“We work in a new industry which requires both deep technology and significant capital. Our data center in Finland already provides the latest high-performance compute, tools and services to AI developers around the world. The addition of our new GPU cluster in Paris is the next step in our plan to expand Europe’s AI capacity as we develop Nebius into a leading global AI infrastructure company,” Volozh said in a news release.
Even before the split, Nebius has already established itself as a key player in Europe, especially with its energy-efficient data center in Mäntsälä, Finland. The company’s expansion strategy includes building new data centers across Europe, securing agreements for additional sites, and increasing capacity at their current facilities. Since the start of the year, they’ve already deployed around $200 million, moving towards tens of thousands of GPUs to power their AI cloud services globally.
Back in July, a Russian consortium completed a $5.4 billion deal to acquire Yandex’s Russian assets, marking one of the largest corporate exits since Russia’s invasion of Ukraine. Nebius, now independent from its Russian ties, is gearing up to become a major force in AI infrastructure, according to Volozh.
The Nebius Group portfolio includes data partner Toloka AI, edtech business TripleTen, and self-driving tech unit Avride. Though the company has inherited Yandex’s Nasdaq listing, trading remains on hold for now.
As part of its expansion, Nebius is investing in boosting GPU capacity, including the Paris-based GPU cluster, featuring Nvidia GPUs. With plans to build two more data centers in Europe and extend its Finland operations, Nebius is setting the stage for significant growth in the AI space.
