Nebius Group aims to obtain $3 billion to enhance growth in its main artificial intelligence cloud market, after its $17.4 billion deal with Microsoft.

The financing includes a $2 billion private placement of convertible senior notes and a $1 billion underwritten public offering of the firm’s class A stock.

Goldman Sachs is the main book-running manager for the public offering, while Morgan Stanley, BofA Securities, and Citigroup act as other book-running managers.

Nebius declared it will use the funds to bolster continuous growth, which involves obtaining additional computing power and hardware, acquiring land parcels with reliable suppliers, and enhancing its data center footprint.

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Nebius, based in Amsterdam, announced it would provide Microsoft with GPU infrastructure capacity for a period of five years. According to the agreement, Microsoft could also acquire additional service capacity, elevating the total contract value to around $19.4 billion.

Stocks on Nasdaq soared over 49 percent to reach a record high, driven by the Microsoft deal. They have risen by 245 percent so far this year.

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Nebius emerged from a deal to allocate the assets of the Russian technology company Yandex.

In recent years, the worldwide demand for data center capacity has surged considerably as companies utilize new technologies for operations, especially after the emergence of generative artificial intelligence.

Nebius Group is a technology firm developing comprehensive infrastructure to support the rapidly expanding global AI sector. Based in Amsterdam and traded on Nasdaq, Nebius Group has a worldwide presence with R&D centers throughout Europe, North America, and Israel.

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Nebius Group’s cloud platform, designed for AI, is optimized for demanding AI tasks. Nebius Group provides AI developers with a comprehensive set of intentionally crafted and optimized proprietary software and hardware developed internally, offering the compute, storage, managed services, and tools essential for creating, refining, and executing their models and applications.