Formerly part of Yandex, “The Google of Russia”, Nebius Group (NBIS) underwent a massive restructuring amid the breakout of war between Russia and Ukraine. In July 2024, Yandex sold all of its Russian assets, retained its non-Russian businesses, and pivoted the company to focus on infrastructure for artificial intelligence.
Although the company is relatively new, Nebius has become one of the hottest and most-talked-about AI companies in the world because of its “neocloud.” The term neocloud refers to a cloud that is built from the ground up specifically for AI. In other words, unlike Alphabet’s (GOOGL) “Google Cloud” and Amazon’s (AMZN) “Web Services” (AWS), the Nebius neocloud is not a generalist cloud but instead is precisely focused on AI ecosystems. Traditional clouds have virtual layers between the user and hardware, slowing the massive calculations needed to train large language models (LLMs) like OpenAI’s “ChatGPT.” On the other hand, Nebius’s “InfiniBand” network is the gold standard for AI because it enables thousands of chips to act as a single supercluster brain. Meanwhile, Nebius sells entire “AI factories”, which include the data center, cooling systems, and software needed to run massive AI training clusters.
The first evidence that Nebius would become an AI infrastructure juggernaut came in September 2025 when the company inked a $17.4 billion deal to become a key infrastructure partner for Microsoft’s (MSFT) AI cloud. However, it didn’t end there. Monday, Nebius scored a massive, landmark, $27 billion, 5-year deal to provide Meta Platforms (META) with compute capacity. For context, Nebius’ market cap is $28 billion, and these two deals alone are worth at least $44.4 billion!
Image Source: Zacks Investment Research
One year ago, NVIDIA (NVDA) CEO Jensen Huang predicted that agentic AI would become the next wave of the AI revolution. The emergence and wild popularity of “OpenClaw” and other agentic AI products prove that Huang’s prediction was spot on. Once again, NBIS was early to a hot trend. In early 2026, Nebius acquired agentic AI search company Tavily for ~$400 million. Additionally, last week, Nebius scored a $2 billion investment from NVDA. As part of the agreement, the two powerhouses will collaborate to create a “best-in-class” agentic AI stack. Also, Nebius will be granted early access to NVIDIA’s highly coveted (and often sold out) GPUs.
Zacks Consensus Estimates predict that NBIS will grow revenue by a staggering 505% in 2026 and 190% in 2027. Meanwhile, by 2029, Nebius revenues are expected to grow by a mind-boggling 60x – and that was before the NVIDIA and META deals were announced!
