NVIDIA is set to inject $2 billion into Nebius Group, an Amsterdam-based AI cloud company that originated from Yandex post the Russia-Ukraine conflict, aiming to establish over 5 gigawatts of NVIDIA-utilized computing capacity by 2030. The funding is through private placement, with NVIDIA gaining warrants convertible into 21,065,936 Nebius Class A shares at $0.0001 each, generating $2 billion in proceeds. NVIDIA agrees to a six-month lockup on both the warrant and acquired shares, with the deal structured as an exempt offering under US securities law, meaning new shares aren’t SEC-registered.
Nebius will utilize this capital for developing its AI cloud platform and building new data centers. Already operating gigawatt-scale AI factories in the US, it plans a new 1.2-gigawatt facility in Missouri. The CEO of NVIDIA, Jensen Huang, emphasized the focus on agentic AI, while Nebius’s Arkady Volozh asserted the company’s AI-specific infrastructure origin.
Having emerged from Yandex N.V. following European sanctions on Volozh and halted Nasdaq trading in its shares after Russia’s aggression in Ukraine, Nebius executed a significant restructuring. By July 2024, Yandex sold its Russian assets for $5.2 billion while retaining international AI assets, and resumed trading on Nasdaq in October 2024 after lifting Volozh’s sanctions.
NVIDIA’s ties with Nebius began earlier, having participated in a $700 million funding round in December 2024, obtaining a minor equity interest. This new $2 billion investment boosts their partnership into a formal strategic alliance. The transaction mirrors NVIDIA’s prior $2 billion investment in CoreWeave and other firms, which critics argue may be more about structural demand management than genuine strategic conviction.
For Q4 2025, Nebius reported $227.7 million revenue, marking a 547% increase, yet faced a $249.6 million net loss and $2.1 billion capital spending on GPUs. Entering 2026, with an annualized revenue of $1.25 billion, Nebius predicts $7 to $9 billion in ARR for the year. Post-announcement, Nebius’s market cap surged 16%, reaching $28 billion, with the stock trading at about 43 times sales despite its ongoing losses.