Just days after securing a landmark $19.4 billion artificial intelligence infrastructure agreement with Microsoft Corp, Amsterdam-based Nebius Group NV has announced it has raised $3.75 billion through a combination of convertible notes and equity sales to fund its next wave of expansion.

The capital injection comes as Nebius prepares to build out major infrastructure capacity in response to the long-term deal with Microsoft. Under the agreement, Nebius will provide AI computing power from a new data center in Vineland, New Jersey, beginning later this year and continuing through 2031. The deal includes options that could increase its value from $17.4B to $19.4B.

Stock Soars on Microsoft Deal

The announcement of the Microsoft contract earlier this week sent Nebius shares soaring by 53%, reflecting investor confidence in the company’s ability to compete at the highest level of cloud AI infrastructure. The firm, a spinoff from Russian tech giant Yandex, has experienced a remarkable turnaround since being delisted from Nasdaq following the 2022 invasion of Ukraine.

With the backing of major tech investors like Nvidia and Accel Partners, CEO Arkady Volozh has repositioned Nebius as a sovereign “neocloud” provider targeting large-scale AI clients globally.

Capital Raise: Fueling AI Ambitions

Nebius’ new financing round consists of:

• $2.75 billion in convertible notes, up from a previously announced $2 billion.
  
  • Issued in two tranches of $1.375 billion each.
    
  • One matures in 2030 with a 1% coupon; the other in 2032 at 2.75%.
    
  • Conversion price: $138.75 per share — a 50% premium to the $92.50 equity offering.
    
• $1 billion in new shares sold at $92.50 apiece.
  

The proceeds will be used to acquire land and boost computing resources for Nebius’ data center footprint — both in North America and globally.

According to company filings, capital expenditures tied to the Microsoft deal will be financed through this raise and debt secured against the contract itself. Nebius is also said to be evaluating additional financing options to sustain even faster-than-planned growth.

From Yandex Legacy to Global AI Infrastructure

The Nebius story represents one of the most compelling tech pivots in recent years. Born as the holding company of Yandex, Nebius was spun off and rebranded following CEO Arkady Volozh’s exit from Russian business amid EU sanctions.

After publicly denouncing Russia’s invasion of Ukraine — calling it “barbaric” — Volozh re-emerged at the helm of Nebius with a singular mission: build the next-generation sovereign cloud platform for AI workloads.

With the Microsoft contract secured, a $3.75B war chest, and a share price that has jumped +237% year-to-date, Nebius appears firmly on track to achieve that vision.