Nebius Stock: Palantir Partnership Lands as EBITDA Turns Positive and Convertible Bonds Swell to $5 Billion

Nebius partners with Palantir on sovereign AI infrastructure as Q2 revenue hits $582.3M and $5B convertible notes are priced.

Nebius has secured a strategic partnership with Palantir that slots the cloud provider's AI-native compute and inference infrastructure directly into the Palantir platform, giving Nebius a foothold in a customer segment it has struggled to reach on its own. Under the arrangement, Palantir designates Nebius as its preferred partner for sovereign AI infrastructure, opening its commercial client base to Nebius's cloud offering. Joint rollouts of new compute capacity and modular data centers are also planned.

That access matters because Palantir is a leading supplier of data analytics software to governments and large enterprises with strict data-sovereignty requirements — precisely the buyers who have historically kept their distance from conventional hyperscalers for regulatory and security reasons. The tie-up pushes Nebius beyond pure infrastructure into security-critical workloads, where trust and compliance carry more weight than price sensitivity.

A quarter that changed the growth narrative

The Palantir news lands on the back of results that underlined just how fast Nebius is scaling. Revenue for the second quarter of 2026 reached $582.3 million, up from $105.1 million a year earlier, powered by 514% growth in the AI cloud business. Adjusted EBITDA swung from minus $21 million to plus $236.2 million — a sign-change that suggests the business model is gaining real substance rather than just top-line momentum.

Four AI cloud deals closed during the quarter alone, each with an average total volume above $1 billion. Management is aiming for full-year 2026 revenue of $3.0 billion to $3.4 billion, with an exit run-rate target of $7 billion to $9 billion. Connected capacity is projected to reach 800 megawatts to 1 gigawatt by year-end, while contracted capacity has been raised sharply to 5 gigawatts. Those are ambitious markers, and they make the coming quarters a genuine test of execution.

Funding secured — at a cost to shareholders

Mid-August brought the pricing of $5.0 billion in convertible notes, split between $3.0 billion at 0.50% maturing in 2030 and $2.0 billion at 4.50% maturing in 2034. The deal was upsized from an originally announced $4.5 billion. In parallel, Nebius exchanged $400 million each of existing convertibles due 2029 and 2031 for roughly 15.8 million Class A ordinary shares. Net proceeds are estimated at about $4.94 billion, rising to as much as $5.68 billion if the over-allotment option is exercised in full.

The cash gives Nebius serious firepower to expand data-center capacity without leaning on near-term operating cash flow. The share exchange, however, dilutes existing holders — a trade-off of more growth capital against a larger share count that investors would be wise to price in soberly.

Institutions build, insiders trim

Recent 13F filings for the second quarter of 2026 show Lone Pine and Soros Fund Management both establishing new positions. At Lone Pine, the stock became the largest single holding despite financing-related volatility, while Soros opened a stake of 310,000 shares worth roughly $85.6 million. Nvidia continues to hold a passive 9.3% stake, combining shares and a pre-funded warrant — a vote of confidence from the top tier of tech investors.

Insiders, by contrast, have been taking profits. Marc Boroditsky sold about 11,000 shares in June at roughly $276, and Arkady Volozh offloaded around 47,000 shares in July at about $235 — the largest insider transaction of the past three months. Such sales are not unusual for a stock that has run hard and are no alarm signal on their own, but they belong in the full picture.

Where the stock stands

The shares closed Friday at EUR 193.88, down 1.3% on the day. Over the past 30 days the price has pulled back 14% following a strong advance, yet it remains up 164% year-to-date — evidence that the recent softness reads more like a breather after a rally than a change in trend. The stock sits roughly 26% below its 52-week high of EUR 261.00 but well above its 200-day moving average of EUR 138.29.

The market's enthusiasm has cooled somewhat without calling the longer-term uptrend into question. What matters now is whether the strategic promise of the Palantir partnership translates into concrete contract wins over the coming quarters — and whether Nebius can carry the dilution that funds its buildout without losing the confidence that has driven the stock this far.