Nebius Raises $3.7 Billion in Wake of Microsoft AI Deal

Company Overview - Dutch cloud computing company Nebius has raised $3.75 million through stock and convertible note sales to enhance its operations [1][2] - The funds will be used to acquire additional compute power, secure strategic land plots, and expand its data center footprint [2] Business Strategy - Nebius aims to aggressively grow its core business in 2026 and beyond, focusing on scaling its global data center portfolio and expanding its customer base from AI startups to larger enterprises [3][4] - The company has entered a multi-year partnership with Microsoft, valued at $19.4 billion, to provide AI infrastructure from its new data center in Vineland, New Jersey [3][4] Market Position - Nebius's core AI cloud business is performing exceptionally well, with expectations to secure long-term contracts with leading AI labs and tech companies [4][5] - The company previously rebranded from Yandex and raised $700 million last year from investors, including Nvidia, to focus on cloud-computing services for AI operations [5] Industry Trends - The cloud, data storage, semiconductor manufacturing, and data center industries are experiencing revenue gains driven by increasing enterprise adoption of AI [6] - A report indicated that 90% of CFOs see very positive ROI from generative AI, a significant increase from 26.7% in March 2024, indicating strong demand for AI technologies [6][7] - Cloud infrastructure service revenues are projected to surpass $400 billion for the first time, with the market re-accelerating due to the AI boom [7]