Nebius Acquires Tavily for $275 Million to Power Next-Generation AI Agents with Real-Time Search

Nebius Expands AI Infrastructure with Tavily Acquisition

Nebius Group NV, the Netherlands-based cloud computing provider that split from Russian internet giant Yandex in 2024, has agreed to acquire Tavily for $275 million, according to sources familiar with the transaction 1

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. The deal could potentially rise to $400 million if certain milestones are achieved 2

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. As part of the agreement, Tavily founder and CEO Rotem Weiss and his team will join Nebius, with the startup continuing to operate under its own brand while serving its existing customer base 4

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Addressing Critical Gaps in AI Agent Capabilities

The acquisition targets a fundamental limitation in current AI systems. Large language models often lack recent information or access to company-specific data, creating challenges for autonomous AI agents that need to operate in real-time environments 1

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. Tavily's agentic search platform acts as an interface between AI systems and the web, enabling developers to integrate powerful search capabilities through a developer-friendly API that combines high-performance search, intelligent crawling, and structured web page extraction 2

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. This approach injects clean, structured data directly into the context windows of large language models, drastically reducing hallucinations and outdated answers.

Building a Unified Platform for Enterprise AI

Nebius co-founder and Chief Business Officer Roman Chernin emphasized that the acquisition advances the company's strategy to build a unified platform where enterprises can build, tune, and run autonomous agents 4

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. "We're not just an infrastructure-as-a-service company -- we're building the complete platform for anyone who wants to build AI products, agents, or services," Chernin stated 2

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. The move positions Nebius to capitalize on a rapidly growing market projected to reach between $140 billion and $200 billion by the early 2030s 3

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Tavily's Strong Market Position and Customer Base

Despite being founded in 2024, Tavily has already generated significant revenue with minimal funding, having raised just $20 million in a Series A round in August, bringing total funding to $25 million 2

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. The company serves a broad customer base that includes Fortune 500 enterprises and fast-growing AI startups such as Cohere Inc., MongoDB Inc., Groq Inc., IBM Corp., Monday.com Ltd., LangChain Inc., and Amazon Web Services Inc. 2

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. With over 3 million monthly SDK downloads and a developer community exceeding one million users, Tavily has demonstrated strong adoption in the market 3

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Rapid Enterprise Adoption Drives Strategic Timing

The acquisition comes amid accelerating enterprise adoption of agentic AI. PYMNTS Intelligence research shows that in August 2025, 52% of companies were merely considering or exploring agentic AI, but by November, that number had fallen to 30% 4

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. Nearly one in four chief product officers reported either piloting or fully using agentic AI in production processes by November, up from just 3% in August 4

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. This shift from exploration to implementation underscores the urgency for integrated solutions that combine AI infrastructure with essential capabilities like real-time data access.

Nebius's Broader AI Strategy and Market Position

Nebius operates data centers in the US, Europe, and Israel, serving clients such as Microsoft Corp., which became a major customer in September 2025 under a multiyear $17 billion revenue agreement 3

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. The company specializes in renting access to premium AI processors such as Nvidia Corp.'s GPU clusters 2

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. Beyond infrastructure, Nebius already offers software for handling AI workloads and introduced Token Factory in November, providing access to open source models and the computing power to run them 1

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. The addition of Tavily's search infrastructure creates a more comprehensive offering, allowing developers to focus on applications instead of managing multiple vendors 2

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