Key Metrics
0.98
Heat Index-
Impact LevelLow
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Scope LevelGlobal
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Last Update2025-07-21
Key Impacts
Positive Impacts (10)
Event Overview
Nebius Group N.V., an Amsterdam-based cloud computing and AI infrastructure company, has raised $1 billion through convertible debt to expand its operations and data centers. The funding includes two tranches of $500 million each, due in 2029 and 2031, convertible into equity. This follows a $700 million funding round in December 2023. The company, spun out from Yandex, specializes in AI-centric cloud services and plans to enhance its GPU clusters. Goldman Sachs facilitated the notes, and Nebius reported a 385% year-over-year revenue increase to $55.3 million in Q1 2025.
Event Timeline
Nebius Group Raises $1 Billion in Convertible Debt to Expand AI Cloud Infrastructure
Nebius Group N.V. (NASDAQ:NBIS), an Amsterdam-based cloud computing and AI infrastructure company, has raised $1 billion through convertible debt to expand its operations and data center footprint. The funding consists of two tranches: $500 million in convertible notes due in 2029 and another $500 million due in 2031. The notes will convert into equity based on the original principal amount of the debt. This move follows a $700 million funding round in December 2023, which included investments from Nvidia Corp. and Accel Partners.
Nebius, spun out from Russian internet giant Yandex, specializes in AI-centric cloud services, including large-scale GPU clusters and tools for AI developers. The company plans to use the new capital to enhance its infrastructure, particularly its GPU clusters, which are critical for AI workloads. CEO Arkady Volozh emphasized the investment community's confidence in Nebius's business model and growth potential.
Goldman Sachs acted as the sole placement agent for the convertible notes, which were offered to qualified institutional buyers. The company has also been expanding its leadership team, appointing Marc Boroditsky, formerly of Twilio, as Chief Revenue Officer to drive revenue growth.
In other developments, Nebius reported a 385% year-over-year revenue increase for Q1 2025, reaching $55.3 million, though this fell slightly short of analyst estimates of $57.7 million. DA Davidson analysts raised their price target for Nebius to $50, maintaining a Buy rating. The company's stock recently surged to a 52-week high of $51, reflecting investor optimism. Nebius also announced a strategic investment in its AI data solutions subsidiary, Toloka, led by Bezos Expeditions and Shopify's CTO.
Nebius operates across four segments, including its core infrastructure-as-a-service (IaaS) business and subsidiaries like Avride (autonomous vehicles) and TripleTen (education software). The company's close collaboration with Nvidia and its focus on AI infrastructure position it as a key player in the rapidly growing AI market.