Nebius says "well-funded" for AI race after closing $4.3 billion debt raise

By Toby Sterling

AMSTERDAM, March 22 (Reuters) - Nebius closed a $4.34 cardinal convertible indebtedness backing circular connected Monday, with a institution enforcement saying that the ‌European AI infrastructure steadfast is present "well-funded" to conscionable its 2026 superior spending ‌plans of $16 cardinal to 20 billion.

The financing caps a period successful which Nebius sold $2 cardinal of stock ​warrants to Nvidia and sealed a woody worthy up to $27 cardinal to proviso Facebook-owner Meta with information halfway capacity, underscoring capitalist appetite for AI infrastructure.

Chief Communications Officer Tom Blackwell said the institution volition support expanding and whitethorn onslaught further deals similar the Meta ‌contract, which followed a $17.3 cardinal ⁠supply woody with Microsoft successful September.

"We'll proceed to see these types of deals arsenic we go, conscionable due to the fact that if they're structured ⁠in the close way, they tin beryllium a precise businesslike root of capital," helium said.

STRATEGIC FOCUS ON AI CLOUD

Blackwell said the large declaration wins were not lone a validation ​of its ​expertise, but besides a mode to money ​a concern that volition prolong ‌it successful years beyond the existent AI request frenzy - offering AI unreality services to firms connected apical of the carnal infrastructure it provides.

He rejected the thought that Nebius is expanding excessively rapidly and volition beryllium near susceptible successful a downturn. "As agelong arsenic endeavor AI adoption does proceed to increase... the request for what we're doing ‌is going to marque sense," helium said.

Nebius plans ​to money 60% of maturation from lawsuit prepayments - ​largely Microsoft and Meta - and 40% ​through a premix of equity and debt, Blackwell said.

On March ‌10, the steadfast sold $2 cardinal successful stock warrants ​to Nvidia astatine ​a stock terms of $94.94. Monday's convertible enslaved offering was accrued amid beardown demand, Blackwell said.

It featured a complaint of 2.63% for notes owed successful 2033, ​with conversion astatine astir 90% ‌above the company's closing banal terms Friday of $117.62.

"We've managed to execute a ​significant magnitude of backing portion truly minimizing the dilution," helium said.

(Reporting ​by Toby Sterling; Editing by Arun Koyyur)