European AI cloud provider Nebius Group has completed a $5.75 billion convertible senior notes offering, marking one of the largest debt raises in the AI infrastructure sector this year. The Nasdaq-listed company announced the closing of the offering this week, following its initial announcement earlier in August.
The notes were issued in two tranches: 0.5 percent convertible notes due 2030 and 4.5 percent convertible notes due 2034, sold through a private placement to qualified institutional buyers. Strong investor demand prompted the initial purchasers to exercise their full option to acquire an additional $450 million in aggregate principal of the 2030 notes and $300 million of the 2034 notes, bringing the total offering size to $5.75 billion.
Nebius said it intends to use the net proceeds to finance the continued growth of its business, including the construction of new data centers, the development of its AI cloud platform, the expansion of its data center footprint, and the procurement of key components such as GPUs, alongside general corporate purposes. The capital injection comes at a time when hyperscale AI workloads are driving unprecedented demand for compute capacity across Europe and beyond.
Concurrently with the pricing of the notes, Nebius entered into separate privately negotiated exchange agreements with a limited number of holders of its existing 2 percent convertible senior notes due 2029 and 3 percent convertible senior notes due 2031. Under those agreements, $400 million of the 2029 notes and $400 million of the 2031 notes were exchanged for approximately 15.8 million Class A ordinary shares, effectively converting prior debt into equity as part of the broader refinancing strategy.
The bond offering follows a period of rapid financial acceleration for the company. Less than a month ago, Nebius secured $775 million in debt financing, and in March 2026 it launched a $4 billion convertible senior notes offering in two series. That same month, Nvidia invested $2 billion in the cloud provider, underscoring the strategic importance of Nebius in the AI infrastructure supply chain.
The company's latest earnings reflect that momentum. In Q2 2026, Nebius reported revenues of $582.3 million, a 454 percent increase compared to the same period in 2025. Adjusted EBITDA swung from a $21 million loss in Q2 2025 to a positive $236.2 million in 2026, signaling improved operational leverage as the company scales its GPU-backed cloud services.
Industry analysts view the raise as a signal of intensifying competition in the European AI cloud market, where capital-intensive buildouts require sustained access to low-cost funding. By locking in long-dated convertible debt, Nebius is positioning itself to expand its infrastructure capacity ahead of anticipated demand from enterprise and research customers deploying large-scale AI models. The move also reflects a broader trend among AI infrastructure providers to diversify funding sources beyond equity as they race to secure GPUs and data center capacity in a supply-constrained environment.
Nebius closes $5.75bn convertible notes offering to fund data center and GPU expansion
By: IDCNOVARegion: Southeast Asia