The market held its breath last week before the subscription of Coreweave (NASDAQ: CRWV), an artificial intelligence servers company that benefits from the impulsion of technology giants such as Openai and Meta to buy graphics processors and storage capacity. Coreeave had to give up his evaluation, reduce it from $ 47 billion to $ 34 billion, and raised only half of the amount that was originally planned. One of the reasons for disappointment at the company is its severe losses, about 800 million dollars last year, and huge debts of $ 8 billion.
Analysts now refer to another active company in the same market, one is already listed, and it is about steady growth and almost operating without debt, NEBIUS (NASDAQ: NBIS), which is run by an Israeli team of senior former Yandex, partly based in Israel.
Nebius was founded in 1989 by Arkady Volozh, founder of “Russian Google”, Yandex. Volozh took a brave stance against President Vladimir Putin in the Ukraine war, and lived in Israel since the Russian invasion in 2014. After he was practically forced to sell his property in the search engine and taxi service in Russia to Putin Cronis, Folose was founded alongside Nebius is a company that builds the maid farms or rents areas in the current servers farms and rents it to companies Technology. Serial entrepreneur Keira Radinsky is the director of Nabius.
To put the space between it and the Putin system, Volozh has built Nebius from the beginning as a Dutch Israeli company, and it is traded on the Nasdaq Stock Exchange, using the stock market company through which the Russian company was traded, until it was traded after the Russian invasion of Ukraine. Initially, this did not succeed: The Italian government refused to allow Nebius to business due to fear of the relationship with Russia. However, last year, thanks to global hunger on artificial intelligence and growing purchases from servers to address them, the company flourished.
Many analysts have recently been enthusiastic about Nonopus as an alternative to Coreave. Alexander Platt, an analyst Da Davidson & Co, believes that the company is a player who grows rapidly but at a more rational and more systematic pace, without borrowing a lot of money.
Neebius revenues at $ 118 million last year, more than half of them from the rental server farmer based on NVIDIA processors, the field of Coreove business. The latter is larger, as two billion dollars in revenues of clients such as Meta, Microsoft and Openai have reached a higher growth rate than NEBIUS, but, as we mentioned, it has debts worth $ 8 billion. On the other hand, Nebius has $ 2.5 billion in cash it inherited from Yandex, and a debt worth only $ 6 million.
The two companies have a joint shareholder, NVIDIA, which holds 1 % of Nebius and 6 % of Coreweave (before the public subscription). In a special situation last December, Nabius raised a total of $ 700 million of other investors, including the ACCEL Capital.
Nebius sells to younger clients from Coreweave, generally unknown technology companies in general. However, the expected decrease in the cost of treating language models after the revolution caused by Depsic caused many players in the industry to search for a cheaper server space. In order to initially attract customers, NEBIUS provided a lower price service, and this appears to be a significant loss of profitability.
Another feature that Nebius on Coreave is its focus on software and cloud services, and the long experience of the Yandex Cloud team, which was already considered one of the best in the world to embody the previous company.
It was published by Globes, Israel Business News – En.globes.co.il – on April 1, 2025.
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