When does a startup cease to be a startup? When it transforms into a public company with 1,300 employees and $2.5 billion in capital. This is the reality for Nebius, a budding AI infrastructure firm born from the remnants of Yandex, once hailed as the “Google of Russia.”
Arkady Volozh, Yandex co-founder and former CEO, described Nebius as resembling a startup due to its “starting up” phase but acknowledged its unusually large scale, requiring substantial resources, personnel, and capital.
Volozh was ousted from Yandex in 2022 following EU sanctions related to Russia’s Ukraine invasion. His subsequent removal from the sanctions list in March allowed him to return as CEO of the revamped Yandex — now situated outside Russia.
The Yandex implosion
Yandex LLC, a Russian entity founded in 1997, encompassed a suite of products from search to e-commerce, advertising, and more. Despite its Russian origins, Yandex N.V., a Dutch holding company, went public on the Nasdaq in 2011. The conflict between Russia and Ukraine caused Nasdaq to halt trading and instigated Yandex’s restructuring to divest its Russian holdings.
The sale of Yandex’s Russian assets to a domestic consortium marked a significant shift, leading to the rebranding of Yandex N.V. as Nebius AI. Nebius aims to establish itself as a prominent AI infrastructure player with a focus on GPU technology and data centers across Europe.
AI compute demand
Nebius competes with established cloud hyperscalers and GPU-as-a-service startups like CoreWeave and Flex AI. The company differentiates itself with a unique blend of existing assets, including Avride, Toloka AI, and Nebius AI, positioning it as a key player in the AI infrastructure landscape.
With plans to triple its capacity in Finland and expand across Europe, Nebius is forging partnerships with industry giants like Nvidia to bolster its AI infrastructure offerings.
Public vs private
Nebius is in the process of reclaiming its public status post-restructuring, citing the benefits of public funding for capital-intensive infrastructure projects. Volozh emphasizes the importance of public visibility in attracting investment and advancing Nebius’s growth in the competitive AI infrastructure market.
As Nebius navigates its transition, the company’s experienced team from Yandex brings a wealth of knowledge in building scalable compute infrastructure, positioning Nebius for success in the evolving AI landscape.
Talent pool
Nebius’s workforce of 1,300 employees, primarily engineers, draws from Yandex’s expertise in global infrastructure deployment. The company’s strategic hubs in Amsterdam, Israel, the U.S., and Belgrade reflect its diverse talent pool and operational flexibility.
Volozh highlights the challenges and achievements of relocating employees amid geopolitical shifts, underscoring the dedication and adaptability of Nebius’s workforce.
Nebius’s transformation from Yandex’s remnants to a dynamic AI infrastructure player signifies a new chapter in Volozh’s entrepreneurial journey, reflecting optimism and ambition for the company’s future in the burgeoning AI sector.
