August 19, 2026, (Inside AI) — Nebius Group is raising $4.5 billion through a private convertible note sale. The Amsterdam company will use the funds for data centers and computing capacity.
The offering splits into $2.75 billion of notes due 2030 and $1.75 billion due 2034. Purchasers can buy an extra $375 million of the 2030 notes and $300 million of the 2034 notes.
Nebius disclosed the plan on Wednesday. The company is an AI cloud provider focused on infrastructure for machine learning workloads.
The capital raise signals how quickly AI infrastructure demand is growing. Nebius competes with hyperscalers and specialized GPU cloud providers for enterprise AI budgets.
Convertible notes let Nebius borrow at lower interest rates than traditional debt. Investors get the option to convert into equity if the stock performs well.
Nebius has been expanding its data center footprint across Europe and beyond. The company rebranded from Yandex N.V. after divesting its Russian assets in 2024.
Why Nebius Needs $4.5 Billion Now
Training and serving large AI models requires thousands of accelerators. Data centers must handle high power density and advanced cooling.
Nebius is building GPU clusters with Nvidia hardware. The company positions itself as a neutral cloud provider for AI teams that want alternatives to AWS, Google Cloud, and Microsoft Azure.
Competition in the AI cloud market is intense. CoreWeave, Lambda, and Crusoe have raised billions for similar infrastructure bets.
Nebius reported strong revenue growth in recent quarters. But capital expenditures for GPUs and data centers are enormous.
The convertible structure gives Nebius flexibility. If the stock rises, debt converts to equity. If not, the company repays principal at maturity.
The Financing Mechanics and What Comes Next
Private convertible notes are sold to institutional investors, not the public market. This lets Nebius move faster than a traditional equity offering.
The 2030 notes give Nebius about four years before maturity. The 2034 notes extend the runway to eight years.
Nebius did not disclose the conversion price or interest rate. Those terms are typically set after investor demand is assessed.
The company said it may use proceeds for general corporate purposes too. But the primary focus is data center expansion and AI platform development.
Nebius shares trade on Nasdaq under the ticker NBIS. The stock has been volatile as investors weigh AI infrastructure spending against profitability concerns.
Analysts will watch how Nebius deploys the capital. The company needs to secure long-term customer contracts to justify the investment.
The AI infrastructure boom has created a financing arms race. Companies that move fastest can lock in scarce GPU supply and prime data center locations.
Nebius has not commented on specific data center locations for the new funding. But the company has previously announced expansion in Finland and other European markets.
