Artificial intelligence infrastructure company Nebius Group N.V. has announced that it plans to acquire Israeli startup Tavily Inc., a company that builds a special search layer for autonomous AI agents.
While the official terms were not shared, reports suggest Nebius will pay $275 million upfront. The total deal value could rise to $400 million if certain performance goals are met.
Tavily was founded in 2024. The company focuses on building search tools that help AI agents access real-time information from both public and private sources. This allows large language models to retrieve accurate and updated data, helping them reason better and take smarter actions.
Its platform works as a bridge between AI systems and the internet. Developers can easily add Tavily’s search features into their applications using a simple API. The system combines fast search, smart web crawling, and structured data extraction.
Unlike traditional search tools, Tavily is designed specifically for AI use. It sends clean and structured data directly into AI models. This reduces the chances of incorrect answers or outdated information, which are common problems in AI systems.
Even though it is a young company, Tavily says it is already generating strong revenue. Its customers include AI startups and large enterprises such as IBM, AWS, MongoDB, Cohere, and Monday.com. The company has raised only $25 million so far, including $20 million in a recent funding round.
Nebius, on the other hand, is a fast-growing AI infrastructure company. It spun off from Russian tech giant Yandex in 2023 to focus on cloud computing for AI workloads. The company rents access to powerful AI chips like Nvidia GPUs.
With this acquisition, Nebius aims to strengthen AI agents by giving them real-time search capabilities. The company sees intelligent search not as an add-on, but as a core part of modern AI infrastructure.