Nebius will tap the market for up to three billion dollars to speed its AI cloud rollout after unveiling a multi-year agreement with Microsoft. The company outlined a mix of two convertible note tranches and a public sale of Class A shares with proceeds earmarked for GPUs, land, and new data center capacity. The plan follows the September 8, 2025 disclosure of a five year Microsoft contract that anchors demand for Nebius infrastructure.
What is being sold and when it matures
Nebius plans two billion dollars in privately placed convertible senior notes split into two series maturing in 2030 and 2032 together with a one billion dollar underwritten equity offering. The company says the structure balances speed and flexibility while it locks in long lead hardware and power-ready sites. The announcement on September 10 came two days after the Microsoft deal and helped push Nebius shares to record levels on Nasdaq.
Upsize after initial demand
Within roughly twenty four hours Nebius signaled stronger interest and moved to raise about three point seven five billion dollars by increasing both the notes and the equity components. Company materials and follow up press reports describe an upsized two point seven five billion note deal plus one billion of stock with options for additional allocations.
The Microsoft agreement in focus
The cornerstone is a five year agreement valued at about seventeen point four billion dollars with options that could lift the total near nineteen point four billion. Nebius will provide dedicated GPU capacity from a new site in Vineland New Jersey with deliveries beginning later this year. That visibility supports rapid buildouts into 2026 and beyond and puts Nebius alongside other neocloud providers serving hyperscale AI demand.
How this compares with peers
CoreWeave and other AI infrastructure specialists have financed growth through a blend of long term take or pay style contracts and capital markets transactions. Nebius is following a similar path with a marquee counterparty and a staged hardware ramp tied to power and grid access milestones. Investors rewarded the playbook with double digit gains after hours and a premium pricing on the equity leg.
Use of proceeds and execution priorities
Funds are slated for computer expansion including NVIDIA GPU purchases, network build and land acquisition in power constrained regions where reliable utilities are critical. Management also highlights hiring for operations and customer support as it opens new service zones for enterprise clients. Timely permits substation buildouts and supply chain cadence will decide how quickly contracted capacity turns into revenue.
Key dates and figures at a glance
September 8 Microsoft agreement announced with value of about seventeen point four to nineteen point four billion
September 10 initial three billion capital plan two billion in notes and one billion in stock
September 11 to 12 offering upsized toward about three point seven five billion as demand strengthened
Class A offering priced around ninety two dollars fifty per share according to market reports with follow on options available for both stock and notes
Why it matters now
The AI build cycle is colliding with power and supply bottlenecks. Those who pre-fund sites secure turbines, transformers and GPUs first. Nebius is trying to leap that queue with contracted demand from a top buyer and a larger balance sheet. Can it execute quickly enough in Vineland and the next wave of campuses. That is the question. For now the capital and the contract create a clear runway.
Bottom line
Nebius is converting a headline customer win into balance sheet firepower then into megawatts and GPUs. If milestones hold the raise becomes a bridge from signed paper to live clusters. If not the convertibles cushion dilution while the market waits. Either way the company has put a bold stake in the race for AI compute.
