Nebius looks to raise $4.5BN through bond issue

Nebius, the Amsterdam-based AI infrastructure provider, is seeking to raise $4.5 billion through convertible notes, the company announced on August 19, per Tech.eu.

The raise is structured across two tranches: $2.75 billion in notes due in 2030 and $1.75 billion in notes maturing in 2034, according to Tech.eu. The company says proceeds will go toward data centre construction, investment in its AI cloud business, and GPU purchases.

Nebius builds and operates GPU-dense data centres, then sells compute access to AI developers and enterprise clients alongside specialised software for running AI applications — a model that places it in the so-called "neocloud" category. The company has secured multi-billion-dollar contracts with Meta and Microsoft to supply AI infrastructure, and in May acquired Eigen, a US startup focused on improving the performance of leading open-source AI models, for approximately $643 million in cash and stock, Tech.eu reports.

The bond issue reflects the capital-intensive nature of AI infrastructure at scale. Data centre build-outs require substantial upfront investment in land, power, and hardware — particularly high-end GPUs — before revenue can be generated from compute customers. Convertible notes give Nebius access to large sums while deferring equity dilution, with the 2030 and 2034 maturities providing a medium-to-long runway to generate returns on the deployed capital.

The Eigen acquisition and the new contracts with hyperscalers like Meta and Microsoft suggest Nebius is positioning itself both as a raw compute supplier and as a provider of higher-value AI model optimisation services. How it deploys the fresh capital across those two pillars — commodity GPU infrastructure versus differentiated AI software — will be a key thing to watch as the notes are issued and spending ramps up.