Nebius to resume Nasdaq trading after severing ties with Russia and Yandex
Nebius, Yandex 2.0, will begin trading on the public markets once more -- two years after the Nasdaq halted trading due to sanctions.
Nebius, the company formerly known as Yandex that’s now focused on cloud infrastructure for AI uses (aka “AI compute”), is to begin trading on the public markets once again — more than two years after the Nasdaq halted trading due to economic sanctions imposed in the wake of Russia’s Ukraine invasion in 2022.
Nebius: The Netherlands-Based Company Poised to Dominate Europe's GPU-as-a-Service Market
In a bold move, Yandex N.V., a Dutch holding organization, has transformed into a new entity called Nebius, with the aim of becoming one of Europe's leading players in the rapidly growing "GPU-as-a-service" space. This unique startup-turned-public company offers an alternative to traditional US hyperscalers like Alphabet and Microsoft, allowing anyone to invest in its innovative AI infrastructure business.
A Brief History of Yandex
Founded in 1997, Yandex is often referred to as the "Google of Russia" due to its extensive portfolio of products and services, including search engines, advertising, maps, and autonomous vehicles. Initially, Yandex focused on its domestic Russian market and a few neighboring countries. However, its parent company, Yandex N.V., went public on the NASDAQ in 2011 and later listed on the Moscow exchange in 2014.
Over the years, Yandex expanded its operations to various countries, including Turkey, Ukraine, and Belarus.
The Russia-Ukraine Conflict and the Birth of Nebius
Prior to the Russia-Ukraine conflict, Yandex N.V. had a valuation of $31 billion. However, the conflict led to a series of global sanctions against companies in the region, including Yandex. In response, Yandex co-founder and CEO Arkady Volozh was forced to resign after being placed on a European Union sanctions list.
He was later removed from the list in March 2024, paving the way for his return as CEO of the new entity, Nebius. The conflict also led to the sale of Yandex's Russian assets, which generated $2 billion in cash, providing Nebius with a solid financial foundation.
Nebius: A European AI Compute Leader
Nebius is built around Yandex N.V.'s remaining assets outside of Russia, including a Finnish data center and AI cloud business called Nebius AI. The company formally emerged in July, outlining its ambition to become a "European AI compute leader" similar to CoreWeave, a company expanding into Europe and raising significant equity and debt.
Nebius's AI infrastructure business is designed to provide a scalable and secure platform for AI workloads, leveraging its expertise in machine learning and data analytics.
A Public Company with a Unique Advantage
Despite the Nasdaq's initial decision to delist Yandex and other Russian-affiliated companies in 2022, Yandex appealed and the Nasdaq agreed to maintain its listing, albeit with a trading halt. With the Russian ties severed and $2 billion in the bank from selling its Russian assets, Volozh decided to continue Nebius as a public company, citing its ease and cost-effectiveness in accessing capital for its capital-intensive business. This unique advantage allows Nebius to focus on its growth strategy without the need for additional funding.
A Vision for the Future
Nebius aims to build one of the world's largest specialist AI infrastructure businesses, requiring access to technological expertise, graphics processing units, and capital. With its existing assets and expertise, the company is well-positioned to achieve its goal. Volozh emphasized, "Our ambition is to build one of the world's largest specialist AI infrastructure businesses. This requires access to technological expertise, graphics processing units and capital. These are exactly what we have." The company plans to achieve this goal by expanding its data center footprint, investing in research and development, and building strategic partnerships with leading technology companies.
Trading Resumes
Nebius's Class A ordinary shares will resume trading on Monday, October 21, 2024, offering investors a unique opportunity to participate in the company's growth and innovation in the GPU-as-a-service market. With its public listing and capital-intensive business model, Nebius is poised to make a significant impact in the European AI infrastructure landscape.
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