AI cloud provider Nebius Group has obtained a $3.5 billion loan from Citi to finance the construction of additional data centers and the purchase of GPUs, the specialized chips that power AI workloads. The company disclosed the transaction in a press release and confirmed it through its official X account. Nebius trades on Nasdaq under the ticker NBIS.

Where the money goes and what it costs

Per the official announcement, the proceeds will go toward data center construction and GPU acquisitions, with a portion set aside for other business needs. The facility carries a 364-day term, meaning Nebius must repay or refinance the debt within roughly one year. It will initially bear an annual interest rate of Term SOFR—a widely used benchmark for dollar borrowing costs—plus 2.75%. The company noted that this rate can rise to as much as 3.50% and remains subject to further adjustments. Citi is serving as mandated lead arranger, agent and security agent on the deal.

Nebius Chief Operating Officer Ophir Nave described the loan as one element of a phased plan designed to raise capital while managing borrowing costs over time. He added that the company retains multiple avenues for additional funding, including asset-backed loans—financing secured by company assets—and more than $40 billion in long-term contracts with multiple customers.

The company confirmed the financing on X:

We've secured a $3.5 billion financing facility from Citi to support our global growth. The facility provides capital at attractive rates, diversifies our capital structure, and gives us greater flexibility over when and how we raise long-term financing. Full release:… pic.twitter.com/iXDLF6mbF5

— Nebius (@nebiusai) October 22, 2026

Nebius' second large raise in two months

The Citi facility arrives roughly two months after Nebius raised $5.75 billion by selling convertible notes—debt that can convert into equity at a later date—according to Dealroom. Dealroom characterized the Citi loan as the largest of 69 debt deals completed by AI companies in the Netherlands since they went public, placing it in the top 1% of such transactions. The firm also observed that Nebius now commands a higher stock market valuation than its U.S. rival CoreWeave.

Why the short maturity matters

The size and rate of the borrowing underscore how AI cloud providers are relying on debt to an even greater degree to meet growing demand for computing power. Data center construction and GPU purchases demand heavy upfront capital, and debt has become an increasingly common way for providers to fund that buildout. That approach carries risk. Because the 364-day facility must be repaid or refinanced within a year, Nebius will be under pressure to deliver on its expansion plans.

Dealroom noted that funding challenges remain across the sector, citing a recent Reuters report on investor concerns about CoreWeave's growing debt. Nebius could leverage its more than $40 billion in customer contracts to obtain additional asset-backed loans, but it must execute on its buildout commitments to do so.

Investors will be watching how Nebius deploys the loan and whether the company raises further capital to fund its growth in 2027 and beyond, as Nave outlined. The repayment or refinancing decision on the 364-day facility, due within roughly a year, is another point to watch.