Nebius Group N.V. (NASDAQ:NBIS), an AI infrastructure firm, has secured a strategic equity financing deal worth $700 million, aimed at accelerating the expansion of its full-stack AI infrastructure. The financing round saw contributions from a consortium of institutional and accredited investors, including Accel, NVIDIA (NASDAQ:NVDA), and Orbis Investments-managed accounts.
The investment will bolster Nebius' efforts to enhance its AI infrastructure capabilities, which include large-scale GPU clusters, cloud platforms, and developer tools and services. This infrastructure supports AI innovators globally and is designed to manage the complete machine learning lifecycle.
Arkady Volozh, Nebius' CEO, expressed gratitude towards investors for their trust and emphasized the company's commitment to delivering on its expansion plans. The company's engineering team, consisting of approximately 400 experts, is set to focus on scaling the technology infrastructure across various markets.
Nebius aims to combine investments in build-to-suit data centers and additional capacity deployments to strengthen its infrastructure. Its recently launched Nebius AI Studio inference service provides app builders with access to a selection of open-source models.
The company will issue 33,333,334 Class A shares at $21.00 each, a slight premium to the recent average trading price. The transaction is subject to customary closing conditions and will be detailed in a forthcoming SEC Form 6-K filing.
The board has also opted against repurchasing Class A shares, a decision influenced by the robust trading dynamics post-resumption of trading on Nasdaq. Instead, Nebius will focus on investing in its core business, where it sees significant market opportunities.
With this strategic financing and the shift in capital allocation strategy, Nebius now anticipates achieving an annualized run-rate revenue between $750 million and $1 billion by the end of 2025.
Goldman Sachs Bank Europe SE is the sole placement agent for the private placement, also serving as the financial advisor for Nebius' strategic review.
The securities offered have not been registered under the Securities Act of 1933 and are subject to specific exemptions from registration requirements. Nebius plans to file a resale registration statement with the SEC following its 2024 Annual Report on Form 20-F to enable the resale of the newly issued Class A shares.
This report is based on a press release statement.
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