Nebius secures $3.5 billion credit facility for GPU and data-center expansion
The AMW Read
An incremental financing update for an established GPU cloud has segment-level implications: the $3.5 billion facility funds capacity expansion, while the reported $5.75 billion convertible issuance underscores capital intensity.
Nebius secures $3.5 billion credit facility for GPU and data-center expansion
Nebius has signed a $3.5 billion senior secured financing agreement with Citibank to fund data-center development, GPU purchases and general operations, according to ZDNet Korea, citing Reuters. The facility matures in 364 days and initially carries interest at SOFR plus 2.75 percentage points, with the spread able to rise to 3.50 points. The agreement provides financing commitments; the report does not establish how much Nebius has drawn.
The deal highlights the financing demands of specialist AI clouds: GPU capacity and data centers require upfront investment, while customer contracts extend over longer periods. Nebius says it holds more than $40 billion in long-term contracts with customers including Microsoft and Meta and is considering asset-backed financing tied to those contracts. This connects the competitive position of independent GPU clouds to both compute availability and access to credit. Customer commitments can support expansion, but they do not eliminate the need to finance construction and equipment purchases.
For investors, the concrete issue is how Nebius funds expansion beyond this facility's short maturity. The report puts outstanding convertible debt at approximately $10 billion after a $5.75 billion convertible issuance in August. Assessing repayment sources, future borrowing terms and the timing of customer cash receipts will therefore matter alongside contracted demand. Nebius shares closed down 7.23% on the announcement day, although that move alone cannot establish investors' reasons for selling.
