Nvidia has joined a $700 million private funding round for Nebius Group, an AI infrastructure company founded in July 2024 after a $5.4 billion asset split from Russian internet giant Yandex. Other participants in the round include venture capital firm Accel and Orbis Investments, highlighting significant interest in the company’s AI-driven ambitions.
Nebius plans to utilize the funds to enhance its GPU clusters, cloud platforms, and other AI tools, with a pledged investment of $1 billion by mid-2025. The company is also expanding its U.S. operations by leasing data center space in Kansas City, Missouri, to better serve its predominantly American client base.
As part of the funding round, Nebius issued 33,333,334 Class A shares at $21 each, representing a 3% premium over recent Nasdaq trading prices. The company has raised its projected 2025 revenue run rate to between $750 million and $1 billion, a substantial increase from its earlier $500 million estimate.
This investment reinforces Nvidia’s strategic focus on advancing its presence in the AI infrastructure sector, aligning with its broader efforts to support cutting-edge AI innovations.
