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4w ago

Nebius Prices $3.7 Billion Raise to Scale GPU Capacity for Microsoft

The fresh cash will speed construction of a Vineland, N.J., data center supplying dedicated AI compute under a five-year contract.

Nebius is a so-called neocloud, building and operating data centers containing large clusters of high-performance Nvidia graphics-processing units, which it then rents out to customers.
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Overview

  • Nebius priced a $1 billion underwritten offering of Class A shares at $92.50 and $2.75 billion in convertible senior notes, with underwriter and purchaser options that could add $562.5 million more.
  • The note tranches include $1.375 billion at 1.00% due 2030 and $1.375 billion at 2.75% due 2032, with closing for the equity offering expected on Sept. 15.
  • Proceeds will fund data-center expansion, acquisition of power-secure land, additional GPU hardware purchases, and general corporate purposes.
  • The financing follows Nebius’s five-year, $17.4 billion agreement to supply Microsoft with dedicated AI capacity from a new Vineland, N.J., facility starting later in 2025, with options lifting the total to about $19.4 billion and a phased rollout through 2026.
  • Shares jumped 45%–49% to all-time highs after the Microsoft deal and traded higher again on Thursday, as coverage highlighted Nebius’s ‘neocloud’ focus, Nvidia ties, and rapid revenue growth alongside ongoing adjusted losses.