Nebius raises $5.75 billion in notes to fund AI cloud buildout

Nebius Group, the Amsterdam-based AI cloud operator, closed a $5.75 billion convertible note sale to fund data-center and GPU expansion, one of the largest capital raises by an AI infrastructure company.

The company said the proceeds will finance expansion of its AI cloud infrastructure, including data centers and GPU capacity, according to the announcement. Nebius, which trades on the Nasdaq under the ticker NBIS, was carved out of Russian internet giant Yandex.

The notes were sold in a private offering in two series, due in 2030 and 2034. The raise gives Nebius cash to buy graphics processors and build out capacity as demand for AI compute outstrips supply, a market where hyperscalers including Microsoft, Amazon and Google are pouring tens of billions of dollars into data centers.

Convertible notes convert into shares, so the raise could dilute existing holders if the stock climbs above the conversion price. The capital also lets Nebius compete more directly with AI cloud rivals such as CoreWeave, which has raised heavily to fund its own GPU fleet.

Nebius is among a wave of AI infrastructure companies tapping debt markets to fund capital-intensive buildouts. The company's expansion targets the same Nvidia-powered compute that hyperscalers and startups are racing to secure, with GPU supply remaining a bottleneck across the industry. The two-tranche structure, with maturities in 2030 and 2034, gives Nebius long-dated capital to match the multi-year buildout cycle of data centers.

The offering shows the scale of capital required to compete in AI cloud, where a single data center can cost billions of dollars. For investors, the key question is whether Nebius can turn the raised capital into revenue growth fast enough to offset the dilution from conversion.

This article is for informational purposes only and does not constitute investment advice.