**Nvidia-Backed Nebius Group Raises $1 Billion for Expansion**
**Meta Description:** Nebius Group, supported by Nvidia, secures $1 billion in convertible debt to enhance its cloud operations and data center infrastructure.
**URL Slug:** nebius-group-funding-expansion
**Nvidia-Backed Nebius Group Raises $1 Billion for Expansion**
Nebius Group NV, a cloud operator backed by Nvidia and spun off from the Russian internet giant Yandex, has successfully raised $1 billion in convertible debt to fuel its expansion plans for the upcoming year. Based in Amsterdam, the cloud computing services company intends to utilize this capital to enhance its infrastructure and broaden its data center presence.
The funding consists of two tranches: $500 million in convertible notes maturing in 2029 and another $500 million due in 2031. According to a company statement, these notes will convert into equity based on the original principal amount of the debt.
In December, Nebius secured $700 million from investors, including Nvidia Corp. and Accel Partners. At that time, Nebius CEO Arkady Volozh expressed optimism about raising additional funds in 2023 to expand the company’s specialized AI chip and cloud service offerings, known as “GPU clusters,” within its data centers.
Last year, Nebius rebranded itself after divesting its Russian operations, which included Yandex’s widely used search engine, amid increasing geopolitical tensions and sanctions following Russia’s invasion of Ukraine.
Goldman Sachs is serving as the sole placement agent for this latest funding round, with the notes being offered to qualified institutional buyers.
In related news, Nvidia recently disclosed a significant stake in Nebius’ competitor, CoreWeave Inc., holding approximately 24.18 million shares, or about 7% of the outstanding stock, as of March 31. This investment highlights Nvidia’s commitment to supporting the growth of cloud computing services, as it played a pivotal role in CoreWeave’s initial public offering by placing an order of around $250 million.
As demand for cloud services continues to surge, Nebius is ramping up its capital expenditures to meet the needs of its clients, positioning itself for future growth in the competitive cloud computing landscape.
**FAQ**
**What is Nebius Group’s primary focus?**
Nebius Group specializes in cloud computing services, particularly in expanding its infrastructure and data center capabilities to support AI technologies and GPU clusters.