Nebius Group shares dropped sharply Wednesday after the AI infrastructure company announced plans to raise $4.5 billion through convertible senior notes, adding fresh financing for its aggressive data center and computing expansion.
NBIS stock fell 7.6% to about $248.43, after dropping more than 7% in premarket trading. The shares traded as low as $226 during the session. Despite the decline, Nebius remains up nearly 200% in 2026, reflecting strong investor enthusiasm around AI infrastructure.
The Amsterdam-based company plans to issue $2.75 billion of notes maturing in 2030 and $1.75 billion due in 2034. Purchasers will also have options for another $375 million of the 2030 notes and $300 million of the 2034 notes, potentially lifting the total offering to $5.175 billion.
Nebius Needs More Capital for AI Infrastructure
Nebius plans to use the proceeds to expand data center capacity, develop its full-stack AI cloud platform and purchase GPUs and other computing equipment needed to support growth.
The size of the raise highlights the capital intensity of the AI infrastructure race. Nebius finished June with $8.04 billion in cash and cash equivalents, but spent roughly $5.66 billion on property, equipment and intangible assets during the second quarter, according to the company figures reported by Reuters.
This is also Nebius’ second major convertible financing this year. In March, the company completed a previous offering that generated about $4.3 billion in gross proceeds. Nebius has said its 2026 capital expenditure plans could reach $16 billion to $20 billion as it builds capacity for large AI customers.
Dilution Concerns Pressure NBIS Stock
Convertible debt can eventually be exchanged for shares, creating potential dilution for existing investors. That risk appears to be one factor weighing on NBIS, while convertible-bond buyers can also hedge their positions by shorting the underlying stock, adding near-term selling pressure.
Nebius also plans privately negotiated transactions with holders of existing convertible notes due in 2029 and 2031, exchanging part of those securities for Class A shares. The new offering remains subject to market conditions.
The financing comes as Nebius rapidly expands its position in the AI computing market. Earlier this year, the company secured a deal worth up to $27 billion to supply Meta with computing capacity, after previously striking a multibillion-dollar agreement with Microsoft.
That growth requires heavy upfront investment in GPUs, power and data centers, leaving investors to weigh fast-rising demand against the cost of funding the expansion.
