AI cloud company Nebius Group has secured a $3.5 billion loan from Citi to build more data centers and buy GPUs. The company announced the deal in a press release and confirmed it on its official X account. Nebius trades on Nasdaq under the ticker NBIS.Where the money goes and what it costsNebius will use the money to build data centers and buy GPUs, with some funds reserved for other business needs.The loan has a 364-day term, meaning Nebius must repay or refinance it within a year. It will initially carry an annual interest rate of Term SOFR plus 2.75%. This rate can increase to as high as 3.50% and is subject to further adjustments, the company added. Citi will be the mandated lead arranger, agent and security agent.Nebius Chief Operating Officer Ophir Nave said the loan is one part of a plan set into phases, aimed at raising funds and managing borrowing costs over time. He added that the company still has several ways to raise capital. These include loans backed by assets and over $40 billion in long-term contracts with multiple customers.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, 2026Nebius’ second large raise in two monthsThe Citi loan comes about two months after Nebius raised $5.75 billion by selling convertible notes, according to Dealroom.Dealroom said the Citi loan was the largest of 69 debt deals by AI companies in the Netherlands since they went public, ranking it in the top 1% of such deals.The firm also noted that Nebius is now worth more on the stock market than its U.S. rival CoreWeave.Why the short maturity mattersThe size and rate of borrowing show that AI cloud providers are using debt even more to meet the growing demand for computing power. That approach carries risk. Nebius will be under pressure to deliver on its plans, as the 364-day loan must be repaid or refinanced within a year.Dealroom said funding challenges remain in the sector, citing a recent Reuters report on investor concerns about CoreWeave’s growing debt. Nebius could use its more than $40 billion in customer contracts to get more loans backed by its assets, but it must deliver on its expansion plans to do so.Investors will be watching how Nebius uses the loan and whether it raises more money to fund its growth in 2027 and beyond, as Nave outlined.If you're reading this, you’re already ahead. Stay there with our newsletter.