Via nebius.com
The Amsterdam-based AI infrastructure company upsized its initial $3.75 billion offering amid strong investor demand for exposure to the AI compute boom.
Nebius Group just pulled off one of the largest convertible bond deals in the AI infrastructure space, raising roughly $4.3 billion in gross proceeds to bankroll an aggressive expansion of its data center empire. The offering, which priced on March 18 and closed two days later, came in well above the initial $3.75 billion target after the company exercised an overallotment option.
Inside the deal #
The private offering, conducted under Rule 144A, was structured as convertible senior notes split across two tranches. The 2031 notes carry a coupon of 1.250%, while the 2033 notes come with a 2.625% rate.
The net proceeds are earmarked for four priorities: building out data centers, investing in the company’s full-stack AI cloud platform, expanding its global presence, and procuring GPUs.
Nebius has stated it aims to support multi-gigawatt-scale data center deployments.
Revenue momentum backing the raise #
Nebius posted Q2 2026 revenue of $582.3 million, a figure driven largely by substantial AI infrastructure contracts. Some of those contracts individually exceeded $1 billion, according to the company’s August 12 earnings report.
The revenue trajectory is notable for a company that, not long ago, was better known as the holding structure behind Yandex’s international operations. Nebius has since reinvented itself as a pure-play AI infrastructure provider, pivoting away from its search and consumer roots to chase the far larger opportunity in cloud compute for machine learning workloads.
The competitive landscape #
Nebius is stepping into a market where capital expenditure has become the primary competitive weapon. Microsoft, Google, Amazon, and Oracle have collectively pledged hundreds of billions toward data center construction over the next several years. CoreWeave, which went public in 2025, has been raising debt at a furious pace to fund its own GPU-dense facilities.
What Nebius brings to the table is a full-stack approach. Rather than simply leasing rack space, the company builds its own cloud platform optimized for AI training and inference workloads.
The convertible bond route also distinguishes Nebius from competitors who’ve relied more heavily on equity dilution or secured debt tied to specific assets like GPU clusters. Convertible notes sit in a middle ground: cheaper than straight equity, more flexible than traditional bonds, and appealing to institutional investors who want downside protection with upside exposure to a high-growth name.
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