AI cloud computing services provider Nebius (NBIS.US) has announced it has agreed to acquire agent-based search service startup Tavily. The company stated that by integrating Tavily's agent-based search technology into its AI cloud platform, Nebius can expand the integrated software stack required for building and operating enterprise-grade agent systems. The Token Factory, launched last November, provides agents with the necessary high-performance inference capabilities, while Tavily offers real-time web access functionality to ensure accuracy. Nebius indicated that "by combining high-performance inference with real-time information sourcing, Nebius provides the core foundational building blocks for next-generation AI applications." According to the transaction terms, Tavily's founder and CEO Rotem Weiss and its team of approximately 30 employees will join Nebius and continue to lead the development of Tavily's products. Founded in 2024, Tavily has offices in Tel Aviv, New York, and Abu Dhabi. While specific financial details of the deal were not disclosed, informed sources stated that Nebius will pay an initial sum of $275 million, which could potentially increase to $400 million if certain milestones are achieved. The transaction is expected to be completed in the coming weeks. Nebius co-founder and Chief Business Officer Roman Chernin said, "This acquisition integrates the search layer directly into our technology stack, allowing developers to focus on application development without the need to manage multiple vendors. Our strategy is clear: to provide an open platform serving all clients from startups to large enterprises, equipping them with the tools to control their own AI development path." According to data from Precedence Research, the agent-based AI market size is projected to grow from $7.5 billion in 2025 to nearly $200 billion by 2034.