After selling its Russian assets earlier this year, Nebius had about $2.2 billion in the bank, part of which was allocated for a buy-back program. However, with its shares trading well above the buy-back price, the company deemed the offer no longer necessary, freeing up more capital for expansion. Despite having around $3 billion for building infrastructure, CEO Arkady Volozh stated that the company is already planning to raise more capital due to the high costs of building infrastructure at scale.
Key takeaways:
- Nebius, formerly known as Yandex N.V., has raised $700 million for its U.S. expansion. The investors include Nvidia, Accel, and investment management firm Orbis.
- The company resumed trading on the Nasdaq six weeks ago after a near three-year hiatus due to sanctions against Russian-affiliated companies. It plans to offer a full stack infrastructure for AI companies.
- Nebius has around $2.2 billion in the bank and is planning to use the funds to expand its data center footprint. The company is also looking ahead to raising more capital, either through equity or debt.
- Accel partner Matt Weigand will be joining Nebius’s board of directors, initially as an observer until he’s formally elected at the company’s AGM in 2025.