What's Going On With Nebius Stock Friday

Nebius Lands $775 Million AI Funding as Microsoft and Meta Contracts Back Expansion

This article first appeared on GuruFocus. Nebius (NASDAQ:NBIS) shares fell about 3% in Friday morning trading after the artificial intelligence cloud provider secured $775 million in debt financing to expand its GPU infrastructure. The financing is backed by deployed graphics processing unit (GPU) infrastructure and contracted cash flows and is scheduled to mature on Oct. 31, 2030.

Nebius said the facility carries an interest rate of the Secured Overnight Financing Rate (SOFR) plus 2.5%. The company added that proceeds, together with cash generated from the related customer contract, are expected to cover more than 100% of the capital needed for the planned infrastructure deployment. Nebius said the funding will support additional AI cloud capacity for enterprise and AI-native customers using its full-stack platform.

The company also said it expects to secure additional financing on similar terms, citing more than $40 billion in contracted revenue from customers including Microsoft (MSFT) and Meta Platforms (META). Nebius said the financing transaction was oversubscribed and was led by MUFG as structuring agent, sole bookrunner and underwriter.