Arkady Volozh, the cofounder of Russian internet giant Yandex, is making a comeback with a new European AI company called Nebius Group, aiming to become a leading provider of AI infrastructure.
Key developments in Volozh’s journey: Volozh, once known as the architect of “Russia’s Google,” faced significant challenges following Russia’s invasion of Ukraine in 2022:
- He was targeted by EU sanctions and forced to step down from Yandex, which was valued at $30 billion at its peak.
- Volozh and his team spent two years negotiating with the Kremlin to sell off parts of Yandex still based in Russia, including the search engine, for a reduced price of $5 billion.
- Out of the deal, Volozh salvaged parts of Yandex that were already based abroad, including four business units focused on AI, which will be rebranded as Nebius Group.
Nebius Group’s focus and ambitions: Volozh’s new venture aims to provide AI developers with access to big tech-style infrastructure without the conflicting interests of US giants building their own models:
- The main part of Nebius’ business will be its cloud division, offering infrastructure for AI model developers.
- The company owns one data center in Finland, with plans to triple capacity this year, and is building several others with hundreds of megawatts capacity each.
- Nebius is also renting space in tens of existing data centers, with a total rented capacity exceeding 100 megawatts.
Replicating the Yandex formula: Volozh plans to apply the same strategy that made Yandex successful to Nebius Group:
- Many of the 1,300 people currently working for Nebius in Europe are former Yandex employees.
- In addition to the AI cloud business, Nebius has units dedicated to self-driving, data labeling, and education tech, mirroring Yandex’s diverse portfolio.
Navigating politics and controversy: Volozh hopes to distance himself from the political entanglements that plagued Yandex:
- He left Russia for Israel in 2014, the same year the country annexed Crimea, and faced criticism from both the Russian government and opposition activists.
- After stepping down as Yandex CEO due to sanctions, Volozh publicly condemned Russia’s invasion of Ukraine in August 2023, stating, “Russia’s invasion of Ukraine is barbaric, and I am categorically against it.”
- The EU lifted sanctions against Volozh in March 2024, following his move to sever ties with Russia.
Looking ahead: As Volozh embarks on this new chapter with Nebius Group, he emphasizes the nonpolitical nature of the venture and expresses hope for even greater success than Yandex:
- “We’re building the basic infrastructure, which is very much nonpolitical, unlike what Yandex turned out to be,” Volozh says.
- He sees Nebius as just another company in his journey, stating, “I hope [it will be] much bigger, better than what was built before.”
Broader implications: Volozh’s comeback with Nebius Group highlights the complex interplay between technology, politics, and global business in an increasingly interconnected world. As AI continues to advance and shape various industries, the success of Nebius will depend not only on its technological capabilities but also on its ability to navigate the political and ethical challenges that may arise. Volozh’s experience with Yandex serves as a cautionary tale, emphasizing the need for tech leaders to strike a delicate balance between innovation and social responsibility in an ever-changing geopolitical landscape.
Recent Stories
DOE fusion roadmap targets 2030s commercial deployment as AI drives $9B investment
The Department of Energy has released a new roadmap targeting commercial-scale fusion power deployment by the mid-2030s, though the plan lacks specific funding commitments and relies on scientific breakthroughs that have eluded researchers for decades. The strategy emphasizes public-private partnerships and positions AI as both a research tool and motivation for developing fusion energy to meet data centers' growing electricity demands. The big picture: The DOE's roadmap aims to "deliver the public infrastructure that supports the fusion private sector scale up in the 2030s," but acknowledges it cannot commit to specific funding levels and remains subject to Congressional appropriations. Why...
Oct 17, 2025Tying it all together: Credo’s purple cables power the $4B AI data center boom
Credo, a Silicon Valley semiconductor company specializing in data center cables and chips, has seen its stock price more than double this year to $143.61, following a 245% surge in 2024. The company's signature purple cables, which cost between $300-$500 each, have become essential infrastructure for AI data centers, positioning Credo to capitalize on the trillion-dollar AI infrastructure expansion as hyperscalers like Amazon, Microsoft, and Elon Musk's xAI rapidly build out massive computing facilities. What you should know: Credo's active electrical cables (AECs) are becoming indispensable for connecting the massive GPU clusters required for AI training and inference. The company...
Oct 17, 2025Vatican launches Latin American AI network for human development
The Vatican hosted a two-day conference bringing together 50 global experts to explore how artificial intelligence can advance peace, social justice, and human development. The event launched the Latin American AI Network for Integral Human Development and established principles for ethical AI governance that prioritize human dignity over technological advancement. What you should know: The Pontifical Academy of Social Sciences, the Vatican's research body for social issues, organized the "Digital Rerum Novarum" conference on October 16-17, combining academic research with practical AI applications. Participants included leading experts from MIT, Microsoft, Columbia University, the UN, and major European institutions. The conference...