AI cloud company Nebius has announced its agreement to acquire Tavily, a prominent provider of agentic search technology. This strategic acquisition integrates real-time search capabilities into Nebius's platform, aiming to capture a significant share of the burgeoning agentic AI market. The move underscores a significant step in Nebius's strategy to offer a comprehensive, unified stack for developing autonomous AI systems.
Strategic Expansion into Agentic AI
The acquisition marks a pivotal advancement in Nebius's strategy to evolve beyond infrastructure-as-a-service into a complete AI development platform. By incorporating Tavily's technology, Nebius aims to provide a seamless environment where enterprises can build, refine, and deploy autonomous agents. This integration eliminates the need for developers to piece together solutions from disparate vendors, streamlining the creation of sophisticated AI applications.
Tavily's agentic search technology is a critical addition, complementing Nebius's existing Token Factory which handles high-performance inference for agent reasoning. This combination provides the real-time web access needed for factual accuracy, grounding the agents' capabilities in current information. Together, these components form the essential building blocks for the next generation of enterprise-grade agentic systems on a single platform.
Tapping a High-Growth Market
This acquisition is timed to capitalize on the explosive growth projected for the agentic AI market. Industry forecasts predict the market will expand from approximately $7 billion in 2025 to over $140 billion by the early 2030s. This rapid expansion is driven by the expectation that AI agents will soon generate more internet queries than humans, creating immense demand for robust search infrastructure.
Tavily has already established a strong foothold in the market, demonstrating significant product-market fit through organic, developer-led adoption. The company boasts over three million monthly SDK downloads and a developer community exceeding one million users. Its technology powers mission-critical applications for Fortune 500 companies like IBM and leading AI firms such as Cohere and Groq.
Leadership and Future Operations
Roman Chernin, Nebius's co-founder and Chief Business Officer, emphasized the company's commitment to building a complete platform for AI creators. He stated that integrating Tavily's search layer simplifies the development process, allowing innovators to focus on their applications rather than vendor management. This open platform strategy is designed to empower everyone from startups to large enterprises to control their AI destiny.
Following the acquisition, the entire Tavily team, including founder and CEO Rotem Weiss, will join Nebius to continue leading the product's development. Tavily will maintain its brand identity and continue serving its existing customer base without interruption. The integration will provide Tavily with access to Nebius's extensive global infrastructure and deep engineering resources to accelerate its growth.
Rotem Weiss expressed enthusiasm for the merger, noting that joining forces with Nebius accelerates Tavily's mission to scale agentic search globally. He highlighted the multi-billion-dollar opportunity and the belief that the market is poised for exponential growth as enterprises deploy autonomous AI. Weiss cited Nebius's world-class engineering team as a key enabler for pushing the boundaries of what is possible in the field.
The acquisition of Tavily by Nebius represents a calculated and significant consolidation in the AI platform space. By integrating a best-in-class agentic search solution, Nebius solidifies its position as a provider of a comprehensive, full-stack platform for the next wave of AI development. The transaction, expected to close in the coming weeks subject to customary conditions, strategically equips the company to meet the complex demands of the rapidly scaling agentic AI economy.