NEW YORK, March 18, 2026, 13:54 EDT
- Nebius shares climbed roughly 4.4% to $121.42 in Wednesday afternoon action, following the company’s move to price an upsized $4 billion convertible note offering. Business Wire
- The company plans to put about $3.96 billion in net proceeds toward data center investments, GPUs, and scaling its AI cloud platform. Nebius
- That financing comes on the heels of Meta’s deal, which could reach $27 billion, plus Nvidia’s $2 billion outlay for an 8.3% holding. Reuters
Nebius Group stock picked up 4.4% to $121.42 in Wednesday afternoon trade, pulling back from Tuesday’s steep slide. The AI cloud firm had announced an upsized $4 billion convertible note sale, a move that initially spooked investors when the fundraising plan was revealed. Nebius
Nebius faces a new challenge: footing the bill for its splashy deals. The company clinched a Meta AI infrastructure agreement valued at as much as $27 billion just two days ago, and a $2 billion investment commitment from Nvidia last week. Now it’s securing more funding for data centers and GPUs—the backbone hardware for AI development. Reuters
Fast-growing firms like Nebius often turn to convertible notes — debt that may be swapped for equity down the line — because they’re typically easier on the balance sheet. But with that option comes a fresh wave of dilution fears, now pressing on Nebius’s stock right alongside its backlog. Business Wire
Nebius bumped the offering up to $4 billion from the original $3.75 billion, splitting it into $2.25 billion of 1.25% notes maturing in 2031, plus $1.75 billion of 2.625% notes due 2033. Settlement is slated for March 20. Net proceeds should land around $3.96 billion, or possibly as high as $4.55 billion if the purchaser exercises options for more notes. Plans for the funds: data center builds, more AI cloud capacity, GPUs. Nebius
Initial conversion prices landed around $183.22 and $180.31 per share—some 55% to 57.5% higher than Tuesday’s close at $116.33. The conversion threshold stands out, sitting well above where the stock trades now, despite Wednesday’s bounce. Business Wire
This week’s action in the stock has been turbulent. Monday’s 15% jump came right after Nebius announced its expanded deal with Meta, but by Tuesday, shares pulled back over 10% following the financing plan reveal. Barron’s
Nebius landed a five-year deal with Meta to supply $12 billion in dedicated AI capacity by 2027, with Meta holding an option to purchase as much as $15 billion more over five years—if Nebius hasn’t committed that capacity elsewhere. Chief Executive Arkady Volozh called the contract a boost for Nebius’s AI cloud expansion, saying it would “accelerate the build-out and growth” of the company’s core business. Reuters
Nebius operates in the same AI infrastructure space as U.S.-based CoreWeave, another niche cloud name focused on AI-heavy tasks rather than general enterprise needs. Nvidia just picked up an 8.3% stake in Nebius last week. The company’s got that $17.4 billion Microsoft deal inked back in September. Reuters
This one’s pricey. Nebius logged capital expenditures totaling about $2.1 billion for the December quarter, with revenue at $227.7 million and a net loss of $249.6 million. Still, the company projects revenue will climb to somewhere between $7 billion and $9 billion by the close of 2026. Reuters
Execution risk is still front and center. BWS Financial’s Hamed Khorsand told MarketWatch that certain recent investors “were not prepared for the capital needs that Nebius is talking about.” This week’s sharp moves in the stock show the market is wrestling with big AI deals versus the hefty price tag for carrying them out. MarketWatch
