Nebius Raised $5.75 Billion for Data Centers and AI Through a Bond Offering

Nebius Group, led by Arkady Volozh, which provides cloud infrastructure for AI, raised $5.75 billion through a convertible bond offering, the company announced .

It issued two bond series: one worth $3.45 billion with a 0.5% coupon and maturing in 2030, and another worth $2.3 billion with a 4.5% coupon and maturing in 2034. It had initially planned to raise $4.5 billion, but increased the amount prior to the offering, and the final volume turned out to be another $750 million higher after buyers fully exercised their options to purchase additional securities.

Nebius plans to use the funds raised to further develop its business, including the construction and equipping of data centers, the expansion of its network, the development of a cloud-based AI platform, and the purchase of key components, including graphics processing units.

At the same time, the company reached an agreement with a number of holders of previously issued convertible bonds to exchange securities with a total face value of $800 million for approximately 15.8 million Class A shares.

The announcement of the placement results came after the close of the main trading session. In after-hours trading, Nebius shares were trading slightly higher. At the close of the main trading session, they had fallen 3.8% amid a broad sell-off of AI-related stocks.

Since the beginning of the year, Nebius' market value has nearly tripled. However, the initial announcement of plans to raise $4.5 billion triggered a nearly 13% plunge on August 19.

As of the end of June, Nebius had just over $8 billion in cash and cash equivalents, while the company’s investments in property, plant, and equipment, as well as intangible assets, totaled $5.66 billion in the second quarter alone. Reuters attributes this high level of investment primarily to data centers and the expansion of computing capacity. Earlier in 2026, Nebius had already raised approximately $4.3 billion through convertible bonds.

Nebius, which was formed from the former Yandex N.V., is developing the Nebius AI Cloud platform, Avride autonomous technologies, and the TripleTen educational service. The company also holds stakes in ClickHouse, Toloka, and other projects.

Nebius’s new offering is part of a sharp rise in borrowing by technology companies, which require massive amounts of capital to build AI infrastructure. Since the beginning of the year, investment-grade issuers have issued nearly $1.5 trillion in bonds—36% more than a year earlier, according to Bloomberg. At this pace, the volume of bond issuances could exceed the 2020 record, when companies rushed to take advantage of near-zero interest rates. According to Nomura Securities, the amount borrowed by the largest tech companies alone—about $200 billion—is equivalent to roughly 25% of the net issuance of U.S. medium- and long-term Treasury securities to private investors. This share is five times higher than in 2025, the agency notes.

Bloomberg reports that borrowing by AI companies has become one of the factors driving up yields on U.S. Treasury bonds. Some corporate issues offer higher yields than comparable Treasury securities. As a result, investors are selling U.S. government debt in favor of corporate securities. According to Bank of America, the increase in the issuance of corporate bonds and mortgage-backed securities has added about 0.3 percentage points to the yield on 10-year Treasuries.

In his column titled “Don’t Blame the AI Borrowing Boom for the U.S. Bond Market’s Problems,” Reuters columnist Jamie McGiver cast doubt on the idea that this borrowing has significantly driven up Treasury yields. Goldman Sachs strategists also consider the impact to be minor. Over the past few months, the spread between the yields on corporate bonds outside the AI sector and comparable government bonds has remained virtually unchanged and remains narrow by historical standards. Furthermore, the technology sector accounts for only 12.8% of all corporate bonds issued in the U.S. since the beginning of the year. McGiver believes that Treasury yields may have risen primarily due to statements by the new Fed Chair, Kevin Warsh, in which investors perceived an underestimation of inflation risk.

This article was AI-translated and verified by a human editor