Nebius Group Raises $5 Billion Debt for AI Data Centers as Shares Drop Nearly 10%
Updated
Updated · ETCIO · Aug 22
Nebius Group Raises $5 Billion Debt for AI Data Centers as Shares Drop Nearly 10%
3 articles · Updated · ETCIO · Aug 22
Summary
$5 billion is the new size of Nebius Group’s debt offering, up from $4.5 billion, to fund more data-center buildout and computing capacity for its AI cloud business.
The package includes $3 billion of private convertible notes due 2030 and $2 billion due 2034, with options for another $750 million if buyers exercise additional purchases.
Nebius said the proceeds will expand data-center capacity, support its full-stack AI cloud platform and buy GPUs and other key components needed for growth.
$800 million of debt will also be exchanged for about 15.8 million Class A shares, while the stock closed nearly 10% lower after the offering was announced.
$8.04 billion in cash at the end of June has been offset by heavy spending—$5.66 billion on property, equipment and intangible assets in the second quarter—underscoring the capital intensity of its expansion.