Nebius Secures Billions: AI Cloud Rival Emerges

Nebius Group is solidifying its position as a major AI cloud provider across Europe and North America. Recently, the company finalized multi-billion dollar, multi-year AI infrastructure contracts with industry leaders Microsoft and Meta. To fund this expansion and serve these new agreements, Nebius successfully raised about $2.75 billion in convertible senior notes alongside a $1 billion equity offering.

This substantial funding, totaling $3.75 billion, directly supports the build-out of data centers essential for Nebius's growing AI cloud services. Concurrently, Nebius is actively cultivating future market demand by providing $1.5 million in compute credits to early-stage robotics and physical AI startups, underscoring a strategy to nurture innovation.

As Nebius pursues rapid expansion, investors are closely watching the balance between securing scale and the potential for dilution risk. The company projects significant revenue and earnings growth by 2028, with fair value estimates showing considerable upside potential, though opinions on its future performance vary widely.