Amsterdam-based AI cloud company Nebius Group is making another massive push into the artificial intelligence infrastructure race, announcing plans to raise $4.5 billion through a private offering of convertible senior notes as it races to expand data centers, computing capacity and its full-stack AI cloud platform.
The proposed financing, announced Wednesday, August 19, 2026, comes as demand for AI computing continues to surge and companies scramble to secure scarce GPU and data-center capacity.
Nebius plans to divide the offering into $2.75 billion of convertible notes due in 2030 and $1.75 billion due in 2034. Buyers could also purchase an additional $375 million of the 2030 notes and $300 million of the 2034 notes, potentially increasing the total transaction to roughly $5.175 billion if those options are fully exercised.
The company said the proceeds will help finance the construction and expansion of data centers, development of its full-stack AI cloud platform, and purchases of GPUs and other critical infrastructure components.
But the size of the raise also highlights just how capital-intensive the AI infrastructure race has become.
Nebius is spending billions because demand is still running ahead of supply
The financing announcement follows a blockbuster second quarter for Nebius.
The company reported $582.3 million in revenue for Q2 2026, up 454% from a year earlier, while adjusted EBITDA reached $236.2 million, compared with a loss of $21 million in the same quarter of 2025.
Reuters reported that Nebius signed four AI cloud contracts averaging more than $1 billion each during the quarter. The company’s total contract value nearly quadrupled, while the value of contracts with new customers increased more than ninefold.
That demand is pushing Nebius to expand at an extraordinary pace.
The company recently raised its target for contracted power in 2026 to 5 gigawatts, up from more than 4 gigawatts previously. It also expects to deploy more than 1 gigawatt of new capacity annually from 2027, illustrating the enormous electricity and infrastructure requirements behind the AI boom.
Nebius has said it expects more than $9 billion in customer prepayments this year and currently has more than $40 billion in customer commitments.
The spending is enormous—and so is the cash burn
Nebius ended June with approximately $8.04 billion in cash and cash equivalents, according to Reuters. But the company spent roughly $5.66 billion on property, equipment and intangible assets during the second quarter alone, reflecting the scale of its data-center and computing expansion.
The company has also maintained a 2026 capital-expenditure outlook of roughly $20 billion to $25 billion, underscoring why additional financing remains central to its growth strategy.
This is not Nebius’ first multibillion-dollar financing push.
In March, the company completed a separate convertible-note offering that ultimately reached approximately $4.34 billion after an additional-note option was fully exercised.
That financing came shortly after Nebius announced major AI infrastructure developments involving Meta and NVIDIA, including a potential multibillion-dollar agreement to provide AI computing capacity to Meta and a $2 billion NVIDIA investment. Reuters previously reported that Nebius expected to fund its expansion through a combination of customer prepayments, equity and debt.
Nebius is also reshaping its existing debt
The latest transaction is not simply about raising new money.
Alongside the proposed offering, Nebius expects to enter privately negotiated agreements with certain holders of its existing 2029 and 2031 convertible notes, under which part of those notes could be exchanged for Class A shares.
The new offering remains subject to market conditions, meaning the transaction is not yet completed.
For investors, that distinction matters: Nebius is announcing an intention to raise the capital, rather than reporting that the full $4.5 billion has already been secured.
The market’s first reaction was cautious
Despite Nebius’ explosive revenue growth and expanding AI contracts, the financing announcement initially pressured the stock.
Reuters reported that Nebius shares were down more than 7% in premarket trading following news of the proposed debt offering.
That reaction reflects a central tension surrounding AI infrastructure companies: enormous demand creates enormous growth opportunities, but meeting that demand requires enormous amounts of capital.
Nebius is effectively betting that today’s AI demand will remain strong enough to justify the billions being poured into GPUs, power, land and data centers.
And the company is entering the next phase with a substantial pipeline already in place. Its latest results showed that customers are signing increasingly large AI infrastructure contracts, while management has argued that demand continues to outstrip available supply.
The bigger question now is whether Nebius can turn that unprecedented demand into sustainable returns before the cost of building the AI infrastructure catches up with the growth story.
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