Nebius Group, formerly known as Yandex N.V., has raised $700 million in investments from Nvidia and other major investors

Formerly Yandex, now rebranded as Nebius Group, has completed a private placement of shares, raising $700 million from a group of investors including Nvidia, Accel, and clients of Orbis Investments. The company issued 33.3 million shares at a price of $21 each, which is 3% higher than the volume-weighted average share price since its return to Nasdaq in October 2024.

The proceeds will be used to accelerate the construction of data centers and purchase Nvidia computing accelerators, as well as to develop infrastructure in the United States, where more than half of Nebius's clients are located. The company forecasts that annual revenue will reach $750 million to $1 billion by 2025, exceeding the previous estimate of $500 million.

Nvidia's participation in Nebius's funding strengthens their collaboration, although priority supply of next-generation Blackwell GPUs is not guaranteed. Nebius shares rose 16% in pre-market trading to $25.5 per share.

Source: bloomberg.com