Nebius secures $3.5 billion Citi facility for AI expansion

Nebius Group has secured a $3.5 billion financing facility from Citi to fund data center development and GPU purchases, adding short-term borrowing as the AI cloud provider expands capacity for customers. The senior secured facility matures in 364 days. Nebius said it will use the proceeds for data centers, GPUs and general corporate purposes. Its initial interest rate is Term SOFR, a benchmark rate, plus 2.75 percentage points; the spread can rise to 3.50 percentage points, subject to adjustments. Citi is the lead arranger for the facility. Nebius said the financing supports near-term expansion and gives it flexibility over the timing and structure of further fundraising. Chief Operating Officer Ophir Nave said the company has other financing options, including borrowing against long-term customer contracts. Nebius says it has more than $40 billion in such contracts with investment-grade customers. That figure is a company statement and has not been independently verified in the reporting. The company also identifies customer prepayments and operating cash flow as sources of funding. In an August shareholder letter, Nebius said roughly 70% of deals closed in the second...