Full-stack AI Company Nebius Raises $1 Billion to Boost AI Cloud Platform
Nebius Group, an AI infrastructure company, has secured $1 billion in convertible notes to accelerate the development of its AI cloud platform. The company is focused on creating comprehensive infrastructure to support AI and machine learning workloads at scale, including large GPU clusters and an AI-native cloud environment.
Headquartered in Amsterdam and publicly listed on Nasdaq, Nebius operates globally with R&D centers and offices across Europe, North America, and Israel. Their core offering is a cloud platform designed specifically for demanding AI and ML applications. This platform relies on proprietary cloud software architecture and custom-designed hardware components such as servers, racks, and data centers. This integrated approach allows AI developers to access the compute, storage, and managed services they need to build, tune, and deploy models efficiently.
Diversified AI Ecosystem and Strategic Investments
Nebius Group also manages three distinct businesses under its umbrella:
- Toloka AI: Provides data services for AI development stages, from training to evaluation, combining human intelligence with machine learning.
- Avride: Specializes in autonomous driving, developing driverless cars and delivery robots.
- TripleTen: An edtech platform focused on reskilling individuals for technology careers.
In addition to these, Nebius holds equity stakes in other AI-related companies, including ClickHouse and Toloka, which expands its influence across the AI data solutions and analytics space.
Growth Strategy and Financial Outlook
Arkady Volozh, founder and CEO of Nebius, emphasized that this $1 billion raise follows a $700 million equity financing round completed in December 2024. Since then, Nebius has accelerated expansion, scaling its AI infrastructure footprint globally. The fresh capital is intended to fund further growth, enabling the company to increase revenue opportunities in 2026 and advance toward its medium-term revenue target of several billion dollars, while maintaining high margins.
Volozh highlighted the company’s strong balance sheet and low interest costs as key advantages. These factors will help ensure that revenue growth translates effectively into profits, which can then be reinvested into core business areas. Nebius plans to use its non-core assets and equity stakes with promising growth potential to support future funding needs without excessive shareholder dilution or leverage.
Plans for Capital Deployment
The proceeds from the convertible notes will be directed toward expanding Nebius’ AI infrastructure. This includes acquiring additional compute power and enlarging its data center footprint to meet rising demand. The funds will also support general corporate purposes as the company pushes forward with its AI cloud platform development.
For IT professionals and developers interested in AI infrastructure and cloud platforms, Nebius’ approach exemplifies how integrated hardware and software solutions can optimize AI and ML workloads. Keeping an eye on companies like Nebius may provide valuable insights into the evolving AI ecosystem.
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