Shortly before the earnings on Thursday $NBIS (-0,96 %) announced a strategic acquisition. Here are the facts about the deal:
The details:
- Purchase price: Approx. 275 million dollars (cash & shares), with performance-related components of up to 400 million dollars.
Target: Tavily, an Israeli startup specializing in search technology for AI agents.
What does Tavily do?
Unlike Google, which provides links for humans, Tavily is a search engine for AI models. It extracts facts and real-time data from the web in a structured format that AIs can process directly. This reduces "hallucinations" (wrong answers) in AI agents.
The strategy:
Nebius is expanding its business model. Until now, the company has primarily rented out computing power (GPUs). With Tavily, Nebius now also offers the necessary data infrastructure for autonomous AI agents. Developers thus receive computing power and search API from a single source.
The aim is to provide a comprehensive platform for the development of "Agentic AI" instead of just supplying hardware.
How do you rate this step: a sensible addition to the value chain or too expensive?
