Nebius Raised $775 Million to Accelerate Its Global Expansion
"The deal was significantly renegotiated," Volozh's company reported
Nebius expects to raise additional capital on similar terms / Photo: X / NebiusAI
Nebius Group, a cloud provider founded by Arkady Volozh, announced that it has secured its first secured loan of approximately $775 million. The funds will be used to accelerate the global rollout of the company’s cloud-based AI platform.
The credit line is secured by the company’s existing graphics processing unit (GPU) infrastructure and future payments from one of its clients, which has an investment-grade credit rating, Nebius reported. The client is not named in the announcement, but the company’s client list includes tech giants Microsoft and Meta.
The loan matures on October 31, 2030, with an interest rate set at SOFR + 2.50%. According to the company, the loan amount, together with the expected payments from the aforementioned client, covers the costs of deploying the relevant infrastructure “by more than 100%.”
Demand for participation in the deal significantly exceeded supply, Nebius said. He also noted that he expects to raise additional capital “on similarly attractive terms.”
MUFG Bank acted as the lead arranger for the transaction. The lending syndicate also included ABN AMRO Bank, Bank of America, Deutsche Bank, HSBC, Citi, Crédit Agricole CIB, ING, Morgan Stanley, and Goldman Sachs.
Context
Amsterdam-based Nebius leases computing power for artificial intelligence. The company has signed a five-year agreement with Microsoft worth $17.4 billion, with the potential to increase the amount to $19.4 billion, and a contract with Meta to provide infrastructure worth up to $27 billion.
In its first-quarter results, Nebius reported a 684% year-over-year increase in revenue, to $399 million. For 2026, the company forecasts revenue of between $3 billion and $3.4 billion and annual recurring revenue (ARR) of between $7 billion and $9 billion.
Since early July, Nebius shares, which trade on the Nasdaq, have fallen by nearly 38%, partly on news that one of its major clients, Meta Platforms, is developing plans to launch a competing cloud infrastructure business that will sell access to computing power and AI models to third-party customers. Nevertheless, Nebius’s market capitalization has nearly doubled this year. Despite this growth, nearly 60% of analysts covering the company still recommend buying its stock, according to Market Watch data.
This article was AI-translated and verified by a human editor
