Nebius Group NV (NASDAQ:NBIS) shares are climbing Monday, snapping back from a month of declines even as warnings about tight financing for AI infrastructure companies pile up.
- Nebius Group stock is showing upward movement. Why is NBIS stock advancing?
Nebius Stock Rebounds After Monthlong Slide
Nebius builds AI data centers and rents out computing power. Its shares are trading higher Monday after a month of losses. Buyers stepping in at lower prices could explain the move, though no company news says so.
The rebound comes at an uneasy moment. Elon Musk and Nebius’s own chief executive both described a squeeze on AI funding within the past several days.
Elon Musk Warns Neoclouds Face a Shakeout
Musk framed the squeeze in blunt terms on X on Sunday, Oct. 25. Lenders now back only companies with big businesses beyond AI data centers, he argued, a shift he dated to the past few weeks.
He contrasted that with SpaceX, which still raised $40 billion of GPU debt. Musk credited its investment-grade rating and its Starlink and launch revenue. For the more than 200 neoclouds, the picture looks bleaker. Musk predicted “guppy-level death and consolidation,” with only a handful making it through.
Nebius CEO Says Financing is a Task, Not a Problem
Nebius CEO Arkady Volozh addressed the squeeze directly Thursday at Nvidia’s GTC conference in Berlin. According to Volozh, asset-backed financing and the debt market have been temporarily closed since last week.
Even so, Volozh treats funding as work to be done, not a crisis. Financing is “not a problem, it’s a task,” he said in a conversation hosted by former CNBC anchor Deirdre Bosa. He expects prepayments from customers plus alternative financing to cover at least the first gigawatt Nebius is building, and he calls the balance sheet healthy.
Hard numbers back that confidence. Citi extended Nebius a $3.5 billion credit line, announced Thursday, to pay for building data centers and buying GPUs. It lasts 364 days and begins at the Secured Overnight Financing Rate plus 2.75 points. Nebius says its customers have signed commitments worth upward of $40 billion, with terms that run long.
NBIS Shares Are Rising
NBIS Price Action: Nebius shares were up 0.99% at $160.31 at the time of publication on Monday, according to Benzinga Pro.
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