Yandex founder launches AI business Nebius

Alongside a deal to sell ‘Russia’s Google’ to a consortium of Russian investors, the Europe-based owners of Yandex have spun-out AI focussed subsidiaries into a new company, called Nebius Group.

The core Yandex business was sold in a deal worth $5.4bn.

Nebius, comprising the ‘foreign’ interests of Yandex, is headquartered in Amsterdam and is being positioned as AI-centric cloud platforms.

“We now have an exciting opportunity to invest in building the leading AI infrastructure player in Europe with a multi-billion annual revenue potential,” Yandex and Nebius founder Arkady Volozh said in a statement on Tuesday.

“Overcoming the current AI infrastructure deficit is a challenge for the entire industry if the AI revolution is to deliver on its promise. This is something foundational, like the railways in the industrial revolution.”

“What we bring is a unique and specific combination of expertise to address some of the fundamental bottlenecks in AI today.”

Volozh added: “Europe’s challenge in the global AI race is competing for talent. This is what we have – very smart and talented people, capable of creating essential innovative technologies.”

Nebius comprises Toloka AI which is described as a ‘data partner for generative AI development’, TripleTen which is an education technology business focussed on reskilling people for tech careers, and Avride, which is a developer of autonomous driving for self-driving cars and delivery robots.

In their exit of the Yandex business, the Nebius-backers have sealed largest corporate exit from Russia since the invasion of Ukraine.