Nebius doing a $3.75B cash raise days after the Microsoft deal is like getting engaged and immediately getting a b**b job for the wedding… 

AI cloud hopeful Nebius just took a page out of Alibaba’s book with a a $3.75B capital raise. The bullish traders nightmare offering is split between convertible notes and a stock sale… a week after bagging a $17.4B contract with Microsoft for GPU infrastructure. That deal alone basically turned Nebius from “the AI spinoff of Yandex you’ve never heard of” into “the Euro cloud company Wall Street analysts suddenly pretend they’ve always loved.” 

(Source: Giphy) 

In short, the recipes of the offering are as follows: We have $2.75B in convertibles split into two tranches (side note: is it just me or is it the fact that every time I hear “tranche” I get 2008 PTSD?). One is due for 2030 at a 1% coupon, the other due 2032 at 2.75%. Both can flip into shares at $138.75, a fat 50% premium over the stock offering. Additionally, we have $1B in new shares priced at $92.50 each, with Nebius trading around $91–95 after spiking 50% post-announcement Microsoft announcement. 

(Source: Data Center Dynamics) 

As for the cash, it’s earmarked for expanding its AI cloud footprint like buying more NVIDIA GPUs (B200s, H200s, H100s, L40s… pick your poison), securing land for mega data centers, and building out sites from New Jersey to Israel to Iceland. Again, this move just so happens to be the cherry on top of the $17.4B Microsoft deal… which in its own right could stretch to $19.4B with add-ons, where Satya & Co. essentially agreed to rent out Nebius’ new 300MW Vineland, NJ facility (expandable to 700MW). That’s a lot of juice for running Copilot, Bing (cringe), and whatever other AI toys Microsoft decides to unleash.

What’s more is that Nebius isn’t just doing generic cloud hosting B.S. either. Instead, they are positioning themselves as an AI first cloud stack. Meaning, they’ll be able to preconfigure GPU clusters, manage Kubernetes for ML workloads, object storage for giant datasets, and even MLflow tracking. With this, they are aiming squarely at healthcare, drug discovery, media generation, and other compute-heavy verticals. Translation: Think AWS, but stripped of the general-purpose bloat and optimized for one thing: feeding AI models as much silicon as possible.

(Source: Giphy) 

So, given this, what does this actually mean for investors going forward? Well, as of right now… Analysts are tripping over themselves. BWS Financial raised its target to $130, DA Davidson to $125, and the consensus is a clean “Buy.” With a $22B market cap, Nebius is now being treated like Europe’s answer to CoreWeave or Lambda. The risk though, is that building massive GPU farms is insanely capital intensive, margins are thin, and you live or die by your anchor tenants. Microsoft’s check gives Nebius credibility today… but if hyperscalers start building in-house again, the Cinderella narrative here turns into a Yandex’s cast-off pumpkin real quick.

But alas, for now, Nebius looks like the one AI infrastructure play in Europe that doesn’t need to fake it till it makes it. $17B in contracts + $3.75B in fresh ammo = investors willing to overlook just how brutal the economics of AI cloud can be. Place your bets accordingly, friends. Until next time… 

At the time of publishing, Stocks.News holds positions in Microsoft as mentioned in the article.