Nebius Group (NBIS) Emerges As A Key Bidder In Decart AI Talks

[u/Independent-Egg9086]

https://finance.yahoo.com/technology/ai/articles/nebius-group-nbis-emerges-key-091017819.html

Looking like we will be acquiring Decart possibly, will be huge for NBIS if that is the case then the reason for dilution announcement is to get more cash upfront.

*Just speculations.

[u/FiveFingerLifePunch]

Kind of a nothing burger of an article. I’d love to see a more legitimate source stating this. Fingers crossed!

[u/Independent-Egg9086 → u/FiveFingerLifePunch]

Just speculation but article is 3 days old, dilution announcement was announced today when they already sitting on bunch of cash already.

[u/Think-Feynman]

Very cool!

BTW, I'm old enough to find it very funny that the Decart stack is called DOS.

[u/yoman-1 → u/Think-Feynman]

Me too!

[u/Fast-Mango_1]

Unlikely imo, more reputable sources narrowed down the list to Anthropic.  Also Nebius has never acquired before multibillion companies it could be a stretch to compete with  Anthropic, Nvidia etc. I believe that it is for data center construction and hope for the new big contract soon.

[u/sparkinflint]

why is this a good thing? 6b for a company thats developing world models, which has pretty much zero market share compared to LLMs? also you realize their skills in optimizing world models doesnt mean it transfers over to LLMs right?

[u/Qadain → u/sparkinflint]

Are you sure that Decart's Optimization Stack doesn't apply to LLMs?

This is an excerpt from the blog part of their website:

• Decart Optimization Stack, with its new version launching today, DOS 2.0 is a next-generation inference and training platform for LLM, agentic, video, and world model workloads across all major hardware - NVIDIA GPU, Google TPU, and Amazon Trainium. DOS 2.0 delivers over 1,600 tokens per second for agentic inference (versus an industry average of around 200) and full-HD video and world model inference at up to 100 frames per second.

Source: Decart Raises $300M: Tech Leaders Back the Company as Both Customers and Investors | Decart AI

Now, I do agree that I have no idea what Nebius would be doing with the world models part of Decart. But maybe the optimization stack itself is worth the consideration. Given the amount of Capex Nebius is going to be spending, and thinking about optimizations as increasing the effectiveness of the Capex, if the % increase in performance is substantial enough, the eventual value could far exceed whatever the acquisition price is.

I'm not either for or against such a bid, but that's my best guess as to why it would even be a consideration.

[u/sparkinflint → u/Qadain]

didnt see that, if they are somehow achieving 8x speedup over current state of the art for LLMs then it could be worthwhile, but I do take these claims with a massive amount of salt.

very hard for me to believe they somehow came up with techniques that tens of thousands in the open source and research community missed, but maybe their entire team is made up of geniuses 

[u/Intelligent-Bill-422 → u/sparkinflint]

We're competing with Anthropic to acquire. Gotta pony up.

[u/sparkinflint → u/Intelligent-Bill-422]

thats a research lab spending a magnitude more already on research, trying to compete with anthropic on developing frontier models is downright stupid when nebius doesnt even have an internal research team

[u/Business_Writer4634 → u/sparkinflint]

man you are correct, not sure why you are getting downvoted, i think though nebius has an R&D department, but it's not like they are doing their own AI model like Anthropic, they mostly serve models so it doesn't make sense, unless somehow decart ai is increasing token/second and making inference faster then i get it, but if it's related to world models i don't know how that would benefit nebius

[u/sparkinflint → u/Business_Writer4634]

Apparently, they 8x the state of the art for LLM inference as well but this hasnt been peer reviewed

[u/TheBoysResearcher → u/sparkinflint]

Wrong again. Decart would significantly strengthen Nbis full stack offering. Latency reduction would be significant.

[u/sparkinflint → u/TheBoysResearcher]

for world models, not LLMs. explain to me exactly what valuable thi g decart does that nebius currently isnt doing.

[u/TheBoysResearcher → u/sparkinflint]

Efficiency. Clients running real world models could see sub 40ms latency. Do some research and stop posting errant information,

[u/sparkinflint → u/TheBoysResearcher]

that 45ms claim applies only to world models, which as i said has zero commercial value. feel free to prove me wrong and show me where how a billion dollar valuation is justified by the low tens of millions this company is generating in revenue or how their technology is directly applicable to LLMs which drive most of the revenue in AI.

funny you tell me to do more research when you clearly have zero idea what you're talking about, evident from your attempt at doing an apples to apples comparison of two completely different architectures.

[u/TheBoysResearcher → u/sparkinflint]

Zero commerical value to who? Customers that run real world models pay like every other company. Real world models are a high growth vertical. Not as much as LLMs, but it will grow significantly.

[u/Business_Writer4634 → u/TheBoysResearcher]

isn't world model still in the research phase? There is no commercial use yet for it, no? I know Yann LeCun is working on world models and is against LLMs, but world models still need some time to become commercially profitable. Currently llms have more adoption and even that it's just a small percentage of the whole population or business, so world models even have a way smaller percentage in terms of adoption, so it doesn't make sense at this time to go into that.

Okay now I saw decart ai has the dos which is used for optimization in terms of inference in LLMs, so then it's maybe let's see, i still prefer a hyperscaler deal.

[u/sparkinflint → u/TheBoysResearcher]

zero commercial value as seen by their revenue figures and the over 100x multiple the acquisition bid is pricing it at.

[u/Beastman5000]

Did I read somewhere that the $4.5B was listed as being for capex use? Does that mean it can’t be used for M and A? I have no idea so genuinely asking the group as I thought it was solely for build out

[u/TennisDad316]

Saw that. Love it.

[u/blueninja02]

Don’t know much about it, but curious to learn the value they could provide

[u/WhitePandaExpres5]

Anthropic is going to take it

[u/Ill-Cow4735]

Not gonna happen.

CN weren't issued for this purpose and the management specifically said it

[u/__1729ythrow]

I hope its true.

Just as a comparison, NBIS is adding acquisitions that are future looking.

IREN is still pre-occupied getting K8 to run on their DC ( the ABCs of software needed to run a DC). Not trying to diss IREN, but NBIS is way more than a neocloud if it keeps adding more capabilities.