Nebius Group Raises Up to $5.75 Billion for AI Expansion

The Nebius Group is raising up to $5.75 billion through a convertible bond offering to fund the expansion of its artificial intelligence data centers and the development of its AI cloud platform. Initially announced as a $4.5 billion raise, the company increased the offering to $5 billion, with the potential to reach $5.75 billion if buyer options are exercised.

The offering includes $3 billion in notes due 2030 with a 0.5% coupon and $2 billion in notes due 2034 with a 4.5% coupon. Goldman Sachs and JPMorgan are leading the sale, with Citigroup and Bank of America also participating. Alongside the bond sale, the company reached an agreement to swap $800 million of existing convertible bonds for 15.8 million shares.

Nebius, which is partially owned by Nvidia and maintains supply contracts with Meta and Microsoft, reported a second-quarter net loss of $190 million on $582 million in sales. Following the announcement, the company's stock fell nearly 10%, though it remains up nearly 200% year-to-date. Chief Communications Officer Tom Blackwell described the offering as one of the largest in recent history for the corporate convertible world.