Nebius stock drops 6.8% on $3.5 billion debt facility as AI infrastructure concerns grow

Nebius Group's stock fell Thursday as investors assessed its new $3.5 billion financing facility amid growing concerns over debt-funded expansion in the AI infrastructure sector, with shares dropping as much as 6.8%. The Nvidia-backed neocloud provider secured a senior secured credit facility from Citi to fund datacenter development, GPU purchases, and general corporate purposes. The 364-day facility carries an initial interest rate of Term SOFR plus 2.75%, rising to a maximum of 3.50%. Short interest in Nebius has climbed to 20% of its free float, up from 15.4% earlier in 2026. Peer CoreWeave also faced pressure, with some bond yields rising to around 15%, while analysts warn neocloud stocks may remain volatile until financing outlooks clarify.