Nebius Group shares NBIS fell on Thursday as investors assessed the company’s new $3.5 billion financing facility amid growing concerns about debt-funded expansion across the artificial intelligence infrastructure sector.
The Nvidia-backed neocloud provider’s shares dropped as much as 6.8% in trading, facing pressure during the broader market sell-off.
CoreWeave and other data centre operators also declined as investors reassessed the financing risks associated with rapid AI infrastructure expansion.
Nebius secured a senior secured credit facility from Citi to support its near-term development plans.
The company said the proceeds would fund data centre development, GPU purchases and general corporate purposes.
The announcement comes as investors scrutinise the borrowing requirements of neocloud providers, which supply computing capacity to AI developers and other customers.
Nebius secures $3.5B facility to fund AI expansion
The $3.5 billion facility matures in 364 days and initially carries an interest rate of Term SOFR (Secured Overnight Financing Rate) plus 2.75%, rising to a maximum of 3.50%, subject to other adjustments.
Nebius Chief Operating Officer Ophir Nave said the financing demonstrated the company’s flexibility in deciding when and how to raise capital.
Nave added that the facility would support the near-term buildout, while further financing would be needed for the next phase of growth.
He also noted that Nebius had approximately $40 billion in long-term customer contracts that could potentially be used as collateral.
The company said sequencing its financing was intended to optimise its long-term cost of capital.
However, the short maturity of the facility places the borrowing within a sector where investors have become increasingly sensitive to financing conditions and debt obligations.
Neocloud stocks face mounting credit and short-selling pressure
Nebius is among several AI infrastructure companies facing increased scrutiny over their financing strategies.
CoreWeave has been at the centre of the recent sell-off, losing roughly a quarter of its market value last week as its shares and bonds came under pressure.
Yields on some CoreWeave bonds climbed to around 15%, compared with approximately 9.675% when the debt was issued last year.
Piper Sandler cut its price target on Nebius by 22% to $185 on Wednesday, warning that neocloud stocks could remain under pressure until their financing outlook becomes clearer.
Gartner has also predicted that more than 80% of neocloud providers will cease operating independently by 2030.
Short-selling activity has increased across the sector.
According to ORTEX data cited by Reuters, short interest in CoreWeave, Nebius, IREN, Applied Digital and Core Scientific ranged from approximately 20% to 26% of their free floats.
Short sellers have generated an estimated $6 billion in paper profits across US neocloud and data centre companies so far in October, reflecting the sharp decline in their share prices.
Nebius short interest rises as investors reassess AI spending
Nebius has experienced a notable increase in bearish positioning.
Short interest in the company rose to 20% of its free float, from 15.4% at the start of 2026. Investors betting against Nebius recorded approximately $2.94 billion in paper profits during October, although their year-to-date paper losses stood at $3.33 billion.
CoreWeave’s short interest reached 23.7% of its free float, up from 19.6% at the start of the month.
Short sellers made nearly $1.7 billion in paper profits from the stock during October.
Bernstein reiterated its Underweight rating on CoreWeave, while noting that finding bullish investors had become more difficult.
The developments highlight the tension between continued demand for AI computing capacity and the financing required to build it.
For Nebius and its peers, investor sentiment will depend partly on whether expansion plans can be funded on terms that support sustainable growth.
As investors weigh how neoclouds will fund their buildouts, the sector’s sharp swings are likely to keep drawing attention on trading platforms.
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