AI cloud provider Nebius has secured a $3.5 billion financing facility from Citi to accelerate expansion of its artificial-intelligence infrastructure and purchase additional graphics processors.
The Amsterdam-based company is part of a group of specialized AI cloud providers competing with traditional hyperscale cloud companies for customers requiring large quantities of advanced computing capacity.
The facility has a 364-day term and carries an interest rate of 2.75 percentage points above the Secured Overnight Financing Rate.
Nebius said the financing provides additional flexibility as it builds capacity for 2027 and longer-term growth.
The company has more than $40 billion of contracted business with major technology customers including Microsoft and Meta.
It is financing expansion through a combination of customer prepayments, operating cash flow, convertible debt and external borrowing.
Nebius already carries roughly $10 billion of convertible-bond debt, including approximately $5.75 billion issued in August.
The new Citi facility therefore highlights both sides of the AI infrastructure boom.
Demand for computing capacity remains enormous, but supplying that capacity requires equally large amounts of capital.
Data-center operators must finance GPUs, buildings, electricity infrastructure, cooling systems and networking equipment before much of the associated revenue is collected.
That capital intensity has become increasingly important to investors as concerns grow about leverage across the AI infrastructure ecosystem.
Recent volatility in debt associated with rival AI cloud provider CoreWeave has added to scrutiny of how rapidly expanding operators finance growth.
Nebius’s customer contracts provide revenue visibility, but the company’s financing structure will remain important as infrastructure commitments increase.
Investors will watch deployment of the Citi facility, additional fundraising, capacity expansion and whether contracted AI demand translates into cash generation fast enough to support the company’s growing capital base.
