Nebius NBIS recently inked an agreement to acquire Tavily, a provider of agentic search capabilities. This marks a strategic step toward strengthening its AI cloud platform by integrating real-time search infrastructure.
This buyout will position the company to capitalize on the rapidly expanding agentic AI market, which is projected to grow at a CAGR of 43.8% between 2025 and 2034, according to a report from Precedence Research. NBIS also highlighted that agentic search infrastructure represents a “critical enterprise capability” within the agentic AI market, citing industry estimates. These indicate that AI agents are expected to raise more internet queries than humans over the next few years.
Tavily’s agentic search capabilities will enhance its existing software stack, especially Nebius Token Factory and enable developers to assemble and operate enterprise-grade agentic systems. Nebius’ Token Factory delivers high-performance inference that enables AI agents to reason and generate output. Tavily will add to it real-time web access, which is a critical component for ensuring factual accuracy.
By embedding search infrastructure into its platform, Nebius aims to eliminate the need for developers to bring together multiple vendors. This enhances the company’s value proposition to AI firms as enterprises seek to build and deploy autonomous AI agents at scale that can search the web, confirm facts and perform complex real-world tasks.
While financial terms have not been disclosed, the transaction is expected to close in the upcoming weeks, subject to customary closing conditions. Tavily will operate under its brand and continue serving the existing customers. The company has achieved more than 3 million monthly SDK downloads and is used by more than 1 million developers. Its client base includes Fortune 500 companies such as IBM, as well as leading AI innovators like Groq and Cohere, highlighted Nebius.
Inorganic Expansion Strategy for Competitors
CoreWeave CRWV is one of Nebius' direct competitors. The company has resorted to inorganic expansion to boost its footprint in the AI infrastructure space. In October, CRWV agreed to acquire Marimo Inc., maker of an AI-native Python notebook, strengthening its AI development infrastructure. Before that, CRWV acquired Monolith AI, OpenPipe and Weights & Biases to strengthen its end-to-end AI platform. OpenPipe is a leading reinforcement learning platform for training AI agents, while Monolith AI is a leader in AI for physics and engineering. However, its proposed $9 billion Core Scientific deal was ultimately scrapped after stakeholders rejected the deal.
Amazon AMZN, a giant in the AI-cloud infrastructure space, has not announced any major acquisition recently. The company is strengthening its position via internal development, minority investments and partnerships. AMZN, on its recent earnings call, noted that the custom chips business, including Trainium and Graviton, now has an annual revenue run rate of more than $10 billion and is increasing at triple-digit percentages year over year. The company highlighted that Amazon Bedrock is now a multibillion-dollar annualized run rate business, with customer spend up 60% quarter over quarter. In the fourth quarter of 2025, Amazon Web Services reported revenue growth of 24% to $35.6 billion.
NBIS Price Performance, Valuation and Estimates
Shares of Nebius have lost 15.4% in the past month compared with the Internet – Software and Services industry’s decline of 13%.
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In terms of price/book, NBIS’ shares are trading at 4.64X, higher than the Internet Software Services industry’s ratio of 3.46X.
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The Zacks Consensus Estimate for NBIS’ earnings for 2026 has been revised upwards over the past 60 days.
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NBIS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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