Nebius Secures $3.7 Billion Following Landmark Microsoft AI Infrastructure Agreement
NEW YORK – Cloud infrastructure provider Nebius announced today it has raised $3.7 billion in funding, building on the momentum of a recently secured multi-year partnership with Microsoft.The investment arrives as demand for AI-focused cloud services surges across industries.
Nebius, formerly the Russian internet company Yandex, has pivoted to concentrate on cloud-computing services tailored for artificial intelligence operations, selling off its search engine business last year. The company’s core AI cloud business is “performing exceptionally well,” according to founder and CEO Arkady Volozh. This latest funding round follows a $700 million raise in 2023 from investors including Nvidia.
The financial injection comes days after Nebius unveiled a $19.4 billion deal with microsoft, under which Nebius will deliver dedicated AI infrastructure capacity to the tech giant from its new data center in Vineland, New Jersey, beginning later this year.
“We have also said that, along with our core business, we expect to secure notable long-term committed contracts with leading AI labs and big tech companies,” Volozh stated. “I’m happy to announce the first of these contracts, and I believe there are more to come.”
The news reflects a broader trend of revenue growth in the cloud,data storage,semiconductor manufacturing,and data center sectors,driven by the increasing adoption of AI. A recent PYMNTS Intelligence report indicates that 90% of chief financial officers (CFOs) now report “very positive ROI” from generative AI, a considerable increase from 26.7% in March 2024. This positive return is prompting wider implementation of AI across businesses.
Statista projects that cloud infrastructure service revenues will exceed $400 billion for the first time, attributing the market’s recent re-acceleration primarily to the AI boom.
