Nebius (NBIS) closes $5.75B convertible notes to fund AI cloud build-out

Yahoo Finance · 3 hours ago
Nebius (NBIS) closes $5.75B convertible notes to fund AI cloud build-out
  • Nebius closed a private offering of convertible senior notes raising approximately $5.75B in gross proceeds.
  • The offering priced at $5.0B after an upsizing from an initial $4.50B proposal.
  • The capital raise supports a significant increase in Nebius's year-end power target, driven by surging demand for AI cloud services.
  • Nebius is expanding AI infrastructure in the UK, including a new deployment in South Wales with Vantage Data Centers.
  • Nebius faces competitive pressure from firms such as CoreWeave and carries concerns over high capital expenditures and customer concentration.
  • The convertible structure adds future dilution risk for existing shareholders.