Nebius Eyes Another Israeli Acquisition Amid Aggressive Expansion

International cloud computing and data center giant Nebius, valued at approximately $66 billion and traded on Nasdaq, is continuing its aggressive expansion within Israel's tech ecosystem. The company, led by Arkady Volozh, is reportedly exploring the acquisition of an Israeli software firm for an estimated $100 million to $150 million, according to a report by Calcalist.

This potential deal follows Nebius's significant investments in Israel, most notably the acquisition of Tavily, a startup specializing in real-time search technology for AI agents. The Tavily deal could be worth up to $400 million.

Nebius is also strengthening its technological ties in Israel. Although negotiations for a full acquisition of AI21 Labs at a $2 billion valuation did not materialize, the two companies have formed a strategic partnership. This collaboration involves integrating AI21's orchestration technologies into Nebius's cloud platform.

Furthermore, Nebius is expanding its physical presence by establishing an advanced AI Data Center in Modi'in, Israel. This facility will utilize NVIDIA's latest Blackwell series GPUs and was secured as part of a government tender.

The planned acquisition, if completed, would solidify Israel's role as a key development hub for Nebius's global infrastructure, which aims to provide end-to-end solutions for developers of autonomous artificial intelligence agents.