Nebius Group N.V., a leader in AI infrastructure, has secured $700 million in private placement financing. This investment comes from notable institutional and accredited investors, including Accel, NVIDIA, and Orbis Investments. The funds will be used to accelerate the expansion of Nebius' full-stack AI infrastructure, a key driver in its strategy to serve the growing global AI market.

Founded by Arkady Volozh, Nebius aims to build advanced AI infrastructure solutions, focusing on GPU clusters, cloud platforms, and developer tools. The financing will support Nebius' push to expand its capacity in key markets, including the U.S., to meet the demands of AI pioneers worldwide.

Nebius' infrastructure strategy involves constructing state-of-the-art data centers at greenfield sites and expanding its existing facilities through colocation. The company also launched the Nebius AI Studio inference service, providing developers with access to a variety of open-source models in a user-friendly environment. This service is designed to support the entire machine learning lifecycle, from data processing and training to fine-tuning and inference.

The financing comes as the company moves closer to its ambitious goal of delivering annualized run-rate revenue (ARR) between $750 million and $1 billion by the end of 2025. Nebius' focus on providing cutting-edge AI infrastructure reflects its commitment to meeting the growing needs of AI developers and companies around the world.

Despite this massive funding, Nebius has decided against repurchasing its Class A shares. Initially, the company had authorized a repurchase of up to 81 million shares, but strong engagement from investors following the resumption of trading on Nasdaq made this buyback unnecessary. Instead, the board decided that the best way to maximize shareholder value is by investing capital into its core AI infrastructure business.

Goldman Sachs acted as the sole placement agent for this financing, and Nebius has filed with the SEC to register the resale of its Class A shares. The funding strengthens the company's position as a key player in the AI infrastructure space, allowing it to continue innovating and expanding to meet the needs of the rapidly evolving market.