Nebius to raise USD3.75b in debt after deal with Meta

The news: Cloud provider Nebius intends to raise around USD3.75 billion ($5.13 billion) in convertible debt on the back of its AI infrastructure supply deal with Meta.

The numbers: Nebius said that it will offer two senior notes across two series: a USD2 billion aggregate original principal amount of convertible notes due 2031 and a USD1.75 billion aggregate original principal amount of convertible notes due 2033 in a private offering.

The context: Nebius said it will use the funds to finance its data centre expansion and investments to develop its full-stack AI cloud and to purchase customised chips. Cloud providers are scrambling to secure agreements with tech companies looking for computing capacity as they rush to develop AI services, prompting data centre specialists to seek funding to meet demand.  

Nebius and Meta announced their long term supply agreement on Monday, with the social media giant committing to spend up to USD27 billion ($38.31 billion) on infrastructure from the cloud provider over the next five years.