Nebius Considers $150M Acquisition to Expand Israeli Development Hub
Data center giant Nebius is evaluating a $100M-$150M acquisition of an Israeli tech firm as it expands its local development center and Modiin supercloud infrastructure.
The data center giant Nebius is considering expanding its development center in Israel. According to market sources, the company is currently evaluating the acquisition of an Israeli firm for approximately $100 million to $150 million.
Led by Arkady Volozh, Nebius has emerged as one of the prominent global players in cloud computing infrastructure and artificial intelligence, boasting a market capitalization on Nasdaq hovering around $66 billion. The company's growth strategy relies on combining top-tier hardware infrastructure with strategic acquisitions of complementary software and technology firms.
Strategic Acquisitions in the Israeli Ecosystem
In the local arena, Nebius has executed several significant moves. Most notably, it acquired the Israeli startup Tavily for an initial sum of $275 million, with performance milestones potentially bringing the deal up to $400 million. The startup developed a dynamic real-time search and information layer tailored for AI agents (Agentic Search), designed to integrate search capabilities directly into Nebius's cloud ecosystem.
Alongside this, Nebius explored other opportunities in the local tech ecosystem, including advanced talks with AI21. Although a full acquisition did not materialize, the two entities formed a close technological partnership, with Nebius utilizing AI21's technology to power AI agent solutions for its cloud clients.
Advanced AI Data Center in Modiin
Another pillar of Nebius's Israeli operations is the establishment of an advanced AI Data Center in Modiin. Under a governmental framework, Nebius was selected to build and operate a supercloud infrastructure for model training and AI development, integrating advanced hardware technologies such as Nvidia's Blackwell architecture equipped with thousands of HGX B200 GPUs.
