Nebius Group, an artificial intelligence (AI) infrastructure company, has recently announced that it has raised $700 million in a private funding round led by Nvidia, venture capital firm Accel, and accounts managed by Orbis Investments, according to a recent report by Reuters.

Nebius was established in July following a $5.4 billion deal to split the domestic and international assets of Russian internet giant Yandex. The company was founded by Arkady Volozh, the former CEO of Yandex, after trading in Yandex's Nasdaq-listed shares was suspended in the wake of Russia's invasion of Ukraine, according to the report.

The $700 million financing will help Nebius expand its AI capabilities, including building clusters of graphics processing units (GPUs), cloud platforms, and other essential tools for developers.

Nebius has already committed to investing $1 billion by mid-2025, with the potential to increase that figure as demand grows. The company currently leases data centre space in Kansas City, Missouri, and is eyeing further expansion in the United States, where more than half of its clients are based, as per the report.

According to Nebius, the financing round involved the issuance of 33,333,334 Class A shares at $21 per share, representing a 3% premium to the volume-weighted average price of the shares since Nasdaq trading resumed. The company also revised its revenue projections, increasing its annualised run-rate revenue target for the end of 2025 to between $750 million and $1 billion, up from an earlier estimate of $500 million.