Nebius, a hyperscaler that seemingly appeared out of nowhere, has rapidly established itself as a major player in the GPU cloud market. Spun out of Yandex following the 2022 geopolitical shifts, the company started virtually from scratch, building a GPU cloud business now valued at over $4 billion in just 18 months. Its rapid expansion includes growing from zero US employees to over 40 in nine months and developing a substantial 300-megawatt data center in New Jersey.

Andrei Meganov, Nebius's Head of Go-to-Market, recently shared the company's journey and the valuable lessons learned at the SaaStr AI Annual conference. These insights offer a practical playbook for any startup, extending beyond just infrastructure development.

1. Play to Your Strengths First

Nebius leveraged the world-class engineering talent inherited from its Yandex roots. Instead of pursuing a broad, accessible product, they focused on developing complex solutions for sophisticated customers. This approach, counter-intuitive to the common advice of "start simple, go broad," proved effective because it aligned with their core capabilities.

If your team's superpower is deep engineering, lead with that. If your team's superpower is sales, lead with that. Build from strength, then expand.

This engineering-first strategy propelled Nebius into the top tier of GPU cloud providers, serving leading AI companies globally.

2. Your Network Is Your First Pipeline

Rather than seeking random customers, Nebius tapped into its existing network, utilizing venture capital relationships and the Russian-speaking tech community in Silicon Valley. This allowed them to find early adopters who provided crucial, honest feedback necessary to refine their product before attempting to scale.

Many founders rush to achieve "scale" before establishing product-market fit. Nebius prioritized deep engagement with trusted contacts who would offer candid critiques and remain supportive through challenges. The most difficult feedback, they found, often proved the most valuable.

3. Challenge the "Rules" Everyone Accepts

Nebius encountered a widely accepted industry "rule": that selling overseas capacity to US customers was impossible. However, by engaging directly with potential clients, they discovered this wasn't entirely true. While not feasible for all purposes, selling training capacity located in Europe to US-based companies was indeed viable.

This experience underscores the importance of questioning perceived limitations in business. Many constraints are merely assumptions, not immutable realities.

4. When You Commit, Commit with Conviction

Once Nebius decided to enter the US market, their execution was swift, opening their first data center within months and initiating the 300MW facility project. However, this conviction was preceded by thorough preparation: they spent a year on the ground in Silicon Valley conducting deep research before making any significant commitments.

The lesson here is to research deeply, then execute with total conviction, avoiding half-measures.

5. Billboards Actually Work (Sometimes)

Despite the common skepticism surrounding billboards in the tech world, Nebius found them surprisingly effective. They closed deals with customers who saw their billboard on Highway 101 in San Francisco. For tech founders constantly driving that route, a well-placed billboard can plant a crucial seed.

Furthermore, Nebius embraced unconventional publicity. Typos on their promotional swag went viral, generating buzz and discussion. The takeaway: when building awareness from scratch, most publicity is good publicity. Owning mistakes can even become part of your brand story.

6. Go the Extra Mile for A-Players

Building their US sales and marketing team from the ground up, Nebius adopted a specific approach:

  • Utilize in-house recruiters: If affordable, internal recruiters can focus precisely on desired profiles, unlike external agencies that often "spray and pray."
  • Meet the demands of A-players: Top talent is expensive and discerning. Acknowledging their worth and meeting their expectations is crucial for attracting the best.
  • Be ready to change yourself: Rapid growth inevitably changes company culture. Instead of resisting, merge incoming perspectives with existing values to forge something new.

7. Manual First, Then Automate Everything

Nebius's process involved first mastering tasks manually to understand the optimal workflow, then automating them to create seamless customer experiences. Attempting to automate an undefined process is a common startup pitfall.

Additionally, the company advises looking ahead. Andrei Meganov describes the current AI industry as having "overblown investment and underblown revenue." Preparing for the industry's future state, rather than just its present, is vital for long-term success.

The Meta-Lesson

Nebius freely borrowed successful ideas, such as moving into inference-as-a-service after observing its market viability. Their philosophy is that product development doesn't need to be unique; it simply needs to be executed better than the competition.

Tech is a time-based advantage game. The more feedback and iterations a product undergoes, the better it becomes. By iterating faster than competitors, companies can quickly catch up and surpass them.

One regret shared by Nebius was the complete separation of their inference product and GPU cloud product, which led to customer confusion. This highlights the importance of avoiding fragmentation, even when striving for efficiency.

Ultimately, the story of Nebius transcends GPU clouds. It's a testament to a team that navigated an impossible situation, capitalized on its strengths, challenged conventional wisdom, and executed with unwavering conviction. This adaptable playbook holds true for any startup, whether building infrastructure, B2B solutions, or entirely different ventures.