Nvidia-backed Nebius raised $1B in debt financing to expand global AI infrastructure
Nebius Group N.V., a company supported by Nvidia, has obtained $1 billion in debt financing to expand its artificial intelligence (AI) infrastructure globally, including in Asia.
In a statement released on Monday, Nebius announced that it had finalized agreements for the private placement of senior unsecured convertible notes in two tranches totaling $1 billion in principle.
The $500 million total principal amount of the two percent convertible notes due in 2029 and the three percent convertible notes due in 2031 are part of the placement.
The net proceeds of the notes’ issuance will be used by the company for general corporate purposes as well as to finance the expansion of its data center footprint and the purchase of more compute power, among other business expansions.
“We are pleased to have successfully raised $1 billion in convertible notes, which marks another major milestone and underscores the deep conviction of the investment community in our business,
“Since our $700 million equity financing in December 2024, we have been scaling rapidly and expanding our global AI infrastructure footprint,” said Arkady Volozh, Founder and Chief Executive Officer of Nebius.
The company is now able to move more quickly thanks to the new capital it is raising, he said, opening up more revenue opportunities in 2026 and moving it closer to its medium-term goal of mid-single-digit billions of dollars in revenue as a high-margin company with room to grow.
Additionally, he pointed out that creating the fundamental AI infrastructure requires a significant amount of capital.
Apart from having access to the capital markets, he said the company is lucky to have equity stakes and non-core assets with notable growth profiles that can be used to support its core business’s future funding needs.
Additionally, he emphasized how the company’s sound balance sheet and low interest rate will enable revenue growth to be effectively converted into bottom-line outcomes and reinvested in its core operations.
“These are important competitive differentiators for us as it should enable us to deploy billions of additional capital to support our plans for hypergrowth, while remaining disciplined on leverage and minimizing shareholder dilution,
“We are grateful for the continued support of our investors, who understand the scale of what we’re building and the substantial market opportunity we can capture,” he added.
To support the rapidly expanding global AI market, Nebius is a technology company that is developing full-stack infrastructure, which includes large-scale GPU clusters, an AI-native cloud platform, and developer tools and services.
The company, which has its headquarters in Amsterdam and is listed on the Nasdaq, has research and development (R&D) facilities in Israel, North America, and Europe.
Under their own unique brands, the company also runs other businesses, such as TripleTen, a U.S. edtech company, and Avride, an autonomous driving technology for delivery robots and self-driving cars.
