AI cloud provider Nebius has raised $3.75 billion in convertible notes and a stock offering.

The raise follows shortly after Nebius secured a major contract with Microsoft to offer the tech giant access to dedicated GPU infrastructure capacity at its new data center in Vineland, New Jersey. The contract is valued at $17.4bn over five years, but further services and capacity could bring the deal up to $19.4bn.

The raise is more than the initial $2bn from convertible notes that Nebius was looking for. In addition, the company sold around $1bn in new shares, each priced at $92.50.

The notes have been sold in two tranches, each worth $1.375bn. One is due in 2030 with a one percent coupon, the other due in 2032 at 2.75 percent.

The notes have a conversion price of $138.75 per share, at a 50 percent premium of the stock offering.

According to Nebius' announcement, the raised funds will be used "to finance the continuing growth of its business, including the acquisition of additional compute power and hardware, securing strategic high-quality and well-located land plots with reliable providers, the expansion of its data center footprint, and for general corporate purposes."

Nebius is currently developing capacity in several global locations. Plans for the New Jersey data center - now set to be at least partially leased to Microsoft - were announced in March, with a 300MW initial capacity and potential to expand by another 400MW.

The company is also deploying clusters at a data center owned by Patmos in Kansas City, Missouri; at a Verne facility in Iceland; at Ark Data Centres in the UK; and at a new facility in Israel.

Last year, Nebius said that it would triple the capacity of its existing data center in Finland to 75MW. We visited the data center at the time.

Nebius, based in Amsterdam, was formed in 2023 from the non-Russian assets of Moscow-based tech firm Yandex.