Nvidia Invests in Nebius Group to Expand AI Ecosystem
Nvidia invested in neocloud provider Nebius Group as part of a broader strategy to fund AI infrastructure and GPU access.
Nvidia has expanded its strategic investment portfolio across the artificial intelligence sector, funding companies including CoreWeave, Arm Holdings, Applied Digital, Recursion Pharmaceuticals, and WeRide. As part of this initiative, the semiconductor company participated in a $700 million private placement for Nebius Group.
Nebius Group is a neocloud provider that listed on the Nasdaq in late 2024 following a spin-off from the Russian conglomerate Yandex. The company operates data centers in the United States and Europe, offering cloud-based access to Nvidia GPUs.
Financial reports from Nebius Group show an annual recurring revenue run rate of $249 million at the end of the first quarter, marking a 684% year-over-year increase. Management expects the year-end run rate to reach between $750 million and $1 billion. This expansion occurs alongside an estimated $260 billion in collective capital expenditures on AI infrastructure from major cloud hyperscalers, including Microsoft, Alphabet, and Amazon.
