Exploring Nebius Group N.V. (NBIS): A Leader in AI Infrastructure

Nebius Group N.V. (NASDAQ: NBIS) is a Netherlands-based technology company focused on building advanced infrastructure and services for the global artificial intelligence (AI) industry. Headquartered in Amsterdam and listed on Nasdaq, Nebius has emerged as a key player in the AI revolution, providing full-stack solutions for AI developers and businesses. This article delves into the company’s background, operations, business segments, and its strategic position in the rapidly growing AI market.

Company Overview

Founded in 1989 as Yandex N.V. by Arkady Volozh, Nebius Group N.V. underwent a significant transformation in July 2024, when it divested its Russian and Russia-related assets, including Yandex LLC and Yandex.Taxi, due to international sanctions stemming from the Russia-Ukraine conflict. The company rebranded to Nebius Group N.V. in August 2024, retaining its non-Russian businesses and focusing exclusively on AI infrastructure and related technologies. With approximately 1,300 employees as of September 30, 2024, Nebius operates R&D hubs across Europe, North America, and Israel, positioning itself as a global leader in AI-centric solutions.

Nebius Group is built around a core of approximately 850 top-tier AI engineers, leveraging decades of expertise in hardware, software, and cloud engineering to deliver cutting-edge infrastructure for AI workloads. The company’s mission is to provide compute, storage, platforms, and tools tailored to the needs of AI developers, with a focus on scalability, efficiency, and innovation.

Core Business Segments

Nebius Group operates a portfolio of AI-focused businesses, each addressing distinct needs within the AI ecosystem:

1. Nebius AI

The flagship offering, Nebius AI, is an AI-centric cloud platform designed for intensive AI and machine learning (ML) workloads. It provides full-stack infrastructure, including:

Large-scale GPU clusters: Powered by NVIDIA GPUs (L40s, H100, H200) and optimized with high-performance InfiniBand networks (up to 3.2 Tbit/s per host).

Cloud platforms and tools: Managed Kubernetes or Slurm-based clusters for orchestration, fast storage, and a marketplace for popular ecosystem tools.

AI Studio: A recently launched inference service offering access to state-of-the-art open-source models at competitive price-per-token rates.

Nebius controls its entire value chain, from in-house designed servers and data centers to proprietary cloud software, ensuring high efficiency and cost-effectiveness. As an NVIDIA Reference Platform Cloud Partner, Nebius has preferential access to advanced GPU technologies, including the upcoming Blackwell platform.

2. Toloka AI

Toloka AI is a data partner supporting all stages of generative AI development, from training to evaluation. It provides high-quality data services to enhance AI model performance, catering to developers building and fine-tuning AI systems.

3. TripleTen

TripleTen is an edtech platform specializing in reskilling and upskilling individuals for tech careers. Offering a blend of bootcamp and MOOC-style training, TripleTen develops its course content in-house and provides career services with over 40 job placement partners. It operates primarily in the US and Latin America and was named the Best Software Bootcamp in the US by Fortune magazine.

4. Avride

Avride focuses on autonomous driving technology, developing solutions for self-driving cars and delivery robots. Its applications span ride-hailing, logistics, e-commerce, and food delivery, addressing use cases like passenger rides and last-mile package delivery.

5. Minority Investments

Nebius Group holds a 28% stake in ClickHouse, a SQL database management system for analytical data processing, and other minority stakes in AI-focused companies, further diversifying its portfolio.

Infrastructure and Global Footprint

Nebius Group owns and operates advanced infrastructure to support its AI ambitions:

• Data Centers: A data center in Mäntsälä, Finland, a GPU cluster at an Equinix facility in Paris, and two under-construction facilities in Kansas City, Missouri, and Vineland, New Jersey (300MW capacity).
• Global Presence: R&D hubs and offices in approximately a dozen countries across Europe, North America, and Israel, with no presence or revenue in Russia.
• The company is investing heavily in infrastructure expansion, with plans to allocate over $1 billion in Europe by mid-2025 and deploy additional capacity in the US, including a facility housing up to 35,000 NVIDIA chips.

Financial Performance and Market Position

As of July 18, 2025, Nebius Group’s stock price was $52.79, with a market capitalization of $12.7 billion and 240 million shares outstanding. The company reported a trailing 12-month revenue of $161 million as of March 31, 2025, with a significant 400% revenue growth highlighted in its 2024 Sustainability Report. However, it experienced a net income loss of $641.4 million for the period from December 31, 2024, to March 31, 2025, despite a 462.2% revenue increase from $20.9 million to $117.5 million.

In December 2024, Nebius raised $700 million in a private placement from investors, including NVIDIA, Accel, and Orbis Investments, and issued $1 billion in convertible notes to fund its infrastructure build-out. The company projects an annualized run-rate revenue of $750 million to $1 billion by year-end 2025.

Posts on X reflect positive sentiment, with investors highlighting Nebius’s potential as a “high-octane AI infrastructure play” and partnerships with companies like Shopify signaling enterprise adoption. However, some note challenges, such as supply chain delays for its New Jersey data center and longer-than-expected customer acquisition lead times.

Strategic Outlook

Nebius Group is well-positioned to capitalize on the growing demand for AI infrastructure, driven by its:

• Technical Expertise: A team of 400 AI engineers and an in-house large language model (LLM) R&D team.
• Partnerships: Close collaboration with NVIDIA and strategic investments from major players like Accel.
• Compliance and Governance: Adherence to Dutch and international corporate governance standards, with no legacy connections to Russia following a thorough review by a “Big 4” consulting firm.

Despite challenges like supply chain delays and recent financial losses, Nebius’s focus on AI-native infrastructure, diversified portfolio, and global expansion plans make it a compelling player in the AI industry.

Conclusion

Nebius Group N.V. (NBIS) is a dynamic force in the AI infrastructure landscape, offering a comprehensive suite of services through its core Nebius AI platform, Toloka AI, TripleTen, and Avride. With significant investments in data centers, a strong engineering foundation, and a clear focus on AI innovation, Nebius is poised to meet the needs of AI developers and businesses worldwide. As the company continues to scale and execute its ambitious growth strategy, it remains a stock to watch for investors interested in the AI revolution.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.