Nebius Group N.V. (NASDAQ:NBIS) shares are possibly rebounding Tuesday after a steep selloff in neocloud stocks that followed comments from Elon Musk about the financing outlook for the sector.
- Nebius shares are powering higher. What’s behind NBIS gains?
Musk Warns Debt Markets Have Shut Off Funding to Neoclouds Without Non-AI Revenue
In a post on X on Oct. 25, Musk wrote: “As of the past few weeks, debt markets have almost entirely shut off access to money for any company that doesn’t have substantial revenue independent of AI data centers. SpaceX closed $40B of debt for GPUs, but we’re investment grade and have Starlink & launch revenue. That means the 200+ neoclouds are going to see guppy-level death and consolidation. Some will make it through, but not many.” He also said SpaceX is not buying any neoclouds, according to Reuters. Neocloud stocks fell in premarket trading Monday, with Nebius down 3.4%, CoreWeave down 4.5% and IREN down 3.3%, Reuters reported.
CNBC said all three rebounded and turned positive later in the day. Shares of CoreWeave, Nebius and IREN had each fallen more than 30% in October through Monday, according to Reuters, which also said Nebius’ bonds due in 2034 hit record lows.
Nebius Reportedly Raises Nearly $280 Million for Its French Data Center
French outlet L’Informé reported Monday that Nebius raised 250 million euros, or about $279.3 million, for its data center near Lille in northern France, according to Stocktwits and Yahoo Finance. The structure of the fundraising is unclear, since the details are behind a paywall. Nebius is investing 8 billion euros to convert a former Bridgestone site in Béthune, France, into a data center with a target capacity of 240 megawatts, and L’Informé reported that the first 60 MW phase will open in December. The company is also developing sites in Independence, Missouri, and Butler Township, Pennsylvania, each at 1.2 GW, and in Lappeenranta, Finland, at 310 MW.
Nebius Shares Rise
NBIS Price Action: At the time of publication, Nebius shares are trading 9.22% higher at $167.40, according to data from Benzinga Pro.
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