To enhance its global presence in artificial intelligence infrastructure, Nebius Group N.V. has secured $1 billion through a private placement of convertible notes. The offering comprises two senior unsecured tranches: $500 million in 2.00% convertible notes maturing in 2029 and $500 million in 3.00% convertible notes due in 2031. This approach gives Nebius long-term flexibility in capital management, mitigates maturity risk, and strengthens its ability to navigate refinancing cycles over the coming decade.
The notes are expected to settle around June 5, 2025, demonstrating efficient execution and strong market demand. Goldman Sachs Bank Europe SE led the transaction, which was placed exclusively with qualified institutional buyers under Rule 144A of the Securities Act. Nebius and its board have accepted a 30-day lock-up period, with customary exceptions, showing prudent governance.
Riding the wave of AI infrastructure demand
This raise comes amid surging global demand for AI infrastructure. As AI models become more complex and resource-intensive, the industry faces mounting pressure to scale compute capacity, bandwidth, and deployment efficiency. Nebius Group has positioned itself at the centre of this transformation.
The company offers a full-stack infrastructure portfolio built on deep technical expertise, including large-scale GPU clusters, AI-optimised cloud platforms, and developer-focused tools. Its R&D engine, powered by a team of about 850 engineers with extensive experience building world-class infrastructure, forms the cornerstone of its competitive advantage.
CEO Arkady Volozh, who previously co-founded Yandex, emphasised the capital-intensive nature of building foundational AI infrastructure. He described the new funding as a catalyst for accelerated growth, providing “more firepower to go faster” while enabling the company to pursue increased revenue opportunities in 2026 and beyond. According to Volozh, Nebius is tracking toward mid-single-digit billions in medium-term revenue, driven by high-margin business models and rising demand for dedicated AI compute infrastructure.
Deployment strategy: Global scaling with financial discipline
The $1 billion convertible raise follows Nebius Group’s $700 million equity financing in December 2024. That earlier round, which included backing from strategic players like NVIDIA, established the foundation for the company’s rapid global expansion.
The new capital will accelerate Nebius’s acquisition of computing capacity and expand its international data centre footprint to serve AI developers and enterprise customers worldwide. This approach aligns with a broader industry trend: companies increasingly seek purpose-built infrastructure supporting training and inference at scale as AI workloads exceed traditional cloud services’ capabilities.
Volozh also underscored Nebius’s strong financial position, noting the company’s ownership of non-core assets and equity stakes with significant upside potential beyond capital market access. With a robust balance sheet, disciplined cost control, and a low interest burden, Nebius strategically positions itself to convert top-line growth into sustained profitability, instilling confidence in its future.
A defining moment for Nebius
Nebius’s momentum is further bolstered by its expanding ecosystem. The company has forged strategic relationships that go beyond traditional customer agreements. NVIDIA’s participation in Nebius’s 2024 equity financing and its designation of Nebius as a preferred cloud service provider within the NVIDIA Partner Network are significant endorsements. This status grants Nebius priority access to premium GPU infrastructure, enhancing its ability to deliver cutting-edge AI services and reinforcing its market position.
Subsidiary activity adds another layer of depth to the Nebius ecosystem. In May 2025, Toloka, a Nebius Group subsidiary specialising in AI data services, raised $72 million from investors including Bezos Expeditions. Around the same time, ClickHouse, another portfolio company focused on real-time analytics, secured $350 million in funding.
The placement of $1 billion convertible notes establishes Nebius Group as a formidable global AI infrastructure market contender. The deal’s structure, with dual tranches and competitive terms, demonstrates sophisticated financial engineering and capital flexibility. Strong institutional investor participation affirms broad confidence in the company’s leadership and strategic direction.
