Nvidia-backed Nebius raises $1 billion in convertible debt
Nvidia-backed cloud operator Nebius Group NV, spun out from Russian internet giant Yandex, said it has raised $1 billion in convertible debt to expand its operations next year.
Amsterdam-based cloud computing services company plans to use the capital to finance additional infrastructure and expand its data-center footprint.
The notes are in two tranches: $500 million in convertible notes due in 2029 and $500 million due in 2031, the company said in a statement on Monday.
The notes will convert into equity on the basis of the original, principal amount of the debt.
Last December, Nebius had raised $700 million from investors including Nvidia Corp. and Accel Partners.
Nebius Chief Executive Officer Arkady Volozh had said at the time that he anticipated raising more this year as the company works to expand its 'GPU clusters' — a package of specialized AI chips and cloud services within data centers, reported Bloomberg.
Last year, the company renamed itself after selling its business in Russia, which included Yandex's popular Russian search engine, amid geopolitical pressure and sanctions following Russia's invasion of Ukraine.
Goldman Sachs is acting as the sole placement agent and the notes will go to qualified institutional buyers, the company said.
Earlier in May, Nvidia had reported a larger-than-anticipated stake in Nebius' rival CoreWeave Inc.
Nvidia, the world's most valuable chipmaker, disclosed a holding of 24.18 million shares, or about 7% of outstanding stock, as of March 31. That stake, included in a 13G filing, compared with a 5.2% figure in CoreWeave's prospectus.
The amount showed how Nvidia supported CoreWeave's late-March initial public offering, acquiring about 6 million shares to add to its existing holding.
Santa Clara, California-based Nvidia, which has fast become one of the most influential companies in Silicon Valley, anchored the IPO with an order of about $250 million, Bloomberg had reported.
The Livingston, New Jersey-based company is accelerating capital spending to meet demand for its services.
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