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Nebius (NBIS.US) raises $700M, Nvidia boosts AI cloud computing

Market IntelMonday, Dec 2, 2024 8:40 am ET

1min read

According to a statement on Monday, Nebius (NBIS.US) will raise $700 million by issuing 33.3 million shares at $21 per share in a directed offering, with investors including Nvidia (NVDA.US), Accel Partners LP and others. Shares of Nebius jumped more than 15% before the market opened on Monday, boosted by the news.

After trimming some of its businesses, Nebius is focusing on providing cloud computing services for artificial intelligence and competing with companies like CoreWeave and larger cloud operators. A lot of money is flowing from large companies and financial investors into the technology that supports artificial intelligence. CoreWeave, which is also backed by Nvidia, is planning a $23 billion IPO.

Nebius CEO Arkady Volozh said the financing will support the company's expansion of its "GPU cluster." Volozh added that he hopes the company can get its hands on the eagerly awaited Nvidia Blackwell chip as soon as possible, but the Nvidia investment doesn't guarantee that, "the deal has nothing to do with GPUs," "but it certainly indicates our close relationship, and we hope it will have an impact." He also said he expects another "possibly larger" financing for Nebius in 2025.

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