TLDR
- NBIS stock declined in Monday’s premarket session as investors assessed tighter AI infrastructure lending conditions.
- Nebius CEO Arkady Volozh acknowledged financing challenges but maintained confidence in the company’s financial position.
- Nebius secured a $3.5 billion Citi financing facility to fund data center expansion and chip purchases.
- Elon Musk warned that debt restrictions could force smaller AI cloud providers to merge or close.
- Short sellers accumulated $2.94 billion in unrealized gains from Nebius during October, according to ORTEX data.
Nebius Group (NBIS) shares fell before Monday’s U.S. opening bell as investors weighed tighter lending conditions for artificial intelligence companies. NBIS stock fell in premarket trading after CEO Arkady Volozh discussed funding limits, while Elon Musk warned of failures across the AI cloud industry.
NBIS Stock Faces Financing Concerns
Volozh spoke at Nvidia’s GTC Berlin conference on Thursday. He said some financing channels had temporarily closed recently, including loans backed by assets. His comments followed growing questions about how AI infrastructure providers will pay for new data centers.
The chief executive said Nebius had a healthy balance sheet. He pointed to customer payments made in advance and other funding methods. Volozh said those resources could support at least one gigawatt of computing capacity.
Musk Warns About AI Debt
Musk said Sunday that lenders had sharply reduced financing for companies relying mainly on AI data center revenue. His remarks followed a wider decline in technology shares last week as investors questioned the costs of AI expansion.
He predicted failures and mergers among more than 200 specialized cloud companies. Musk said SpaceX had already secured debt financing because its satellite internet and launch operations generate revenue outside AI infrastructure.
Nebius Secures $3.5 Billion
Nebius announced a $3.5 billion secured credit facility with Citi on October 22. The company plans to use the financing for data center construction, Nvidia chips and general expenses. The agreement gives Nebius access to funds during its global expansion plans.
The facility matures after 364 days. Its initial interest rate equals SOFR plus 2.75 percentage points, with increases possible. Meanwhile, Musk claimed that SpaceX secured $40 billion for AI chips, although Bloomberg reported that pricing talks remained open.
Investors Short AI Infrastructure Stocks
Reuters reported that traders betting against five AI infrastructure companies gained about $6 billion in unrealized profits in October. Data from ORTEX put Nebius short sellers’ paper gains at $2.94 billion. Its short interest reached 20% of freely traded shares.
The downturn extended beyond NBIS stock. CoreWeave and IREN faced selling, with the broader drop in AI cloud stocks reflecting concerns about borrowing costs. These companies continue spending heavily on computing equipment and sites. Nebius says its long-term customer contracts exceed $40 billion. Those commitments may support future borrowing, but they do not remove the need to finance construction.
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