Nebius Group borrows $5B in convertible notes for AI expansion
Business
Amsterdam-based Nebius Group is borrowing $5 billion (up from $4.5 billion) to speed up its AI cloud expansion.
They're offering private convertible notes worth $3 billion maturing in 2030, and notes worth $2 billion maturing in 2034 to help fund major upgrades.
Nebius spending triggers nearly 10% slide
Nebius plans to use the cash to boost its data centers, upgrade its full-stack AI platform, and buy more GPUs and tech gear. Investors can also grab an extra $750 million in notes if they want.
Despite having $8.04 billion in cash and cash equivalents at the end of June, Nebius's big spending has made some investors nervous.
The news sent shares down nearly 10%.