The future of artificial intelligence (AI) infrastructure is shaping up to be significantly influenced by one of Russia's most prominent tech figures. Arkady Volozh, the co-founder and former CEO of Yandex, is resurrecting his legacy through a new venture named Nebius. This bonafide tech giant is emerging from the ashes of Yandex, which has recently undergone a dramatic restructuring amid geopolitical tensions and regulatory hurdles stemming from Russia's invasion of Ukraine.
Volozh's journey back into the tech landscape comes at a critical time. After months of negotiations, Yandex has effectively split into two distinct entities: a Russian arm that retains its name and a newly rebranded international division operating under Nebius Group, which will be headquartered in Amsterdam. With its establishment, Nebius aims to forge a new identity in the AI sector, capitalizing on Volozh’s extensive experience and the valuable resources he salvaged from Yandex.
In his first interview since the transition, Volozh expressed optimism about his new venture, emphasizing its potential: "We are building infrastructure for the people who build the models to build AI." He is determined to leverage a storied past and the technical know-how of his previously formidable team at Yandex, now operating within Nebius.
Previously, Yandex was often referred to as the "Google of Russia," signifying its dominant position in search, e-commerce, and cloud computing services. The company, originally launched in 1997, had developed a vast platform that extended beyond search capabilities. However, the ongoing conflict and resulting sanctions drastically reconfigured its operations.
Volozh's ordeal began in June 2022 when he was slapped with sanctions by the European Union, prompting his exit from both Yandex and Russia. These sanctions were partly due to accusations that Yandex’s platforms helped facilitate the Kremlin's narratives during the war. However, his situation shifted in March 2024 when he was delisted from the sanctions list, allowing him to step back into the tech arena.
The journey toward creating Nebius has not been without its challenges. During the restructuring, Volozh successfully negotiated to retain several key business units that are critical to the AI industry's growth, including Nebius AI, Toloka AI, and TripleTen. Each of these companies plays an instrumental role in shaping the AI landscape by providing essential services such as cloud computing, neural network training, and EdTech solutions.
Focusing heavily on AI infrastructure, Nebius is concentrating on creating a state-of-the-art network of GPU clusters to cater to developers and startups that require substantial computing power to drive AI projects. Despite facing fierce competition from established corporations like Microsoft and Amazon, Volozh feels confident about carving out a niche for Nebius. “We produce the full stack – data centers, motherboards, servers, racks, connectivity – everything is our own,” he explained. The groundwork has already been laid; Nebius acquired a Finnish data center previously owned by Yandex, which it plans to expand significantly.
In addition to core technical capabilities, Nebius is uniquely positioned thanks to a talent pool that includes many former Yandex engineers who share Volozh’s vision. Approximately 1,000 of the 1,300 employees now at Nebius transitioned over from Yandex, bringing with them a wealth of operational knowledge and innovative spirit. Their collective experience plays a critical role in the company's ambition to become a market leader in AI cloud services.
The recent tumult within the Russian tech sector also reflects a broader narrative. Yandex once embodied a vision of a modern, digital Russia that relied on innovation over traditional natural resources. However, with the changing geopolitical landscape, the company's reputation and operational ethos have been called into question, culminating in its breakup.
As for the global implications of Nebius, Volozh envisions his company playing a vital role in bridging the gap for talented individuals, particularly young professionals who have migrated from Russia since the war commenced. By building an inclusive and dynamic AI-centric environment, he hopes to attract and retain expertise that can benefit the broader tech ecosystem.
Meanwhile, the Kremlin's increasing hold over higher education institutions has raised concerns about the implications for Russia’s intellectual future. In recent developments, Sergei Glazyev, a controversial figure known for his ties to the Kremlin, has been appointed as a chief researcher at the Higher School of Economics, a once-revered independent university. This move signaled a worrisome trend of state control permeating academic spaces which previously nurtured liberal thought.
Analysts argue that Glazyev’s appointment reflects a systematic effort by the Putin government to standardize ideological perspectives within academic institutions, further stifling dissent and diversity of thought. The fallout from this greater state influence indicates a precarious future for education in Russia, with many calling for a complete overhaul of the system post-Putin.
With universities transforming into tools of state propaganda, the task of revitalizing education and fostering independent thought will be monumental in a post-Putin Russia. As Volozh embarks on his AI journey, the future of the tech landscape in Russia remains under a cloud of uncertainty.
Yet, Volozh's narrative serves as a reminder of the resilience of ideas and innovation, even amid adversity. His determination to build Nebius reflects a broader aspiration to create a sustainable and impactful enterprise within the dynamic field of AI infrastructure.
By positioning Nebius as a non-political challenger in the AI space, Volozh is setting the stage for significant contributions to the global technology community. He is hopeful about forming bridges and alliances that foster innovation, all while ensuring that the infrastructure is accessible and serves the interests of developers across the world.
The landscape for AI technologies will undoubtedly continue to shift as operators like Nebius emerge, asserting their authority in a market previously dominated by larger players. It remains to be seen how Volozh’s vision will evolve and how the socio-political dynamics will impact the tech industry against the backdrop of an ever-changing global stage.
As the narrative unfolds, the tech world will keenly observe Volozh's next moves, eager to see how his ambitions will shape the future of AI infrastructure in Europe and beyond.