Nebius will raise $4.5 billion through a bond offering. Its stock fell 13%.

Arkady Volozh’s AI company, Nebius Group, plans to conduct a private placement of $4.5 billion in convertible bonds, the company said in a press release obtained by Oninvest. Nebius shares fell nearly 13% during trading on August 19. Since the beginning of the year, they have risen 176%.

The company will offer investors two tranches: one worth $2.75 billion maturing in 2030 and another worth $1.75 billion maturing in 2034. In addition, Nebius has granted the placement organizers an option to purchase additional securities totaling up to $675 million within 13 days of the issuance.

The company will use the funds raised to grow its business: building and modernizing data centers, developing its own cloud-based AI platform, expanding its infrastructure, and purchasing necessary equipment, including graphics processing units. Part of the capital will also be used for general corporate purposes, according to the press release.

Nebius is one of the so-called “neoclouds”—that is, companies that capitalize on the enormous global demand for AI computing infrastructure by leasing computing power in data centers. In 2024, the company spun off from the Russian internet giant Yandex and has already secured deals with Nvidia, as well as with major data center operators such as Microsoft and Meta.

Building infrastructure for AI workloads is a costly endeavor, Bloomberg notes. In July, Nebius raised $775 million in financing secured by its assets, including graphics processing units, the company reported. In the second quarter, it spent about $5.7 billion on chips, equipment, and data center expansion. In March, the company announced that it would raise $4 billion through a convertible bond offering.

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