Nebius Just Raised $5 Billion in Convertible Notes Against a $1.4 Billion Revenue Base. Are We In a Bubble?

Motley Fool reports that Nebius Group, an AI cloud company, has raised $5 billion in convertible notes against a revenue base of $1.36 billion. The news caused shares of the company to drop by about 10%, but the deal was later upsized to $5.0 billion with expected net proceeds of $4.94 billion. This move is significant as it represents more than three times the company's annual revenue, raising concerns about whether companies are entering a bubble.

The terms of the convertible notes also provide insight into the costs involved in such rapid scaling and who ultimately bears the financial burden.

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