We demonstrate large (>100%) time-dependent magnetoresistance in nickel-silicide nanowires and develop a thermodynamic model for this behavior. The model describes nonequilibrium heating of localized spins in an increasing magnetic field. We find a strong interaction between spins but no long-range magnetic order. The spins likely come from unpaired dangling bonds in the interfacial layers of the nanowires. The model indicates that although these bonds couple weakly to a thermal bath, they dominate the nanowire resistance. <h4>Keywords: h4> Self-assembled nanowires; nanostructured silicides; magnetoresistance; interfacial spins; nanomagnetism; heat transfer in nanostructures