AI infrastructure company Nscale raises $3.36 billion in a pre-IPO convertible financing round led by Third Point, signaling momentum toward public markets.
Nscale, a London-based artificial intelligence cloud infrastructure company, has raised $3.36 billion through a pre-IPO convertible loan note financing led by Third Point. The financing will support expansion of its vertically integrated AI cloud platform, encompassing data centers, power infrastructure, and large-scale GPU computing clusters.
The round attracted NVIDIA, funds managed by Apollo, Citadel, Hudson Bay Capital, Abu Dhabi Investment Council, and 8090 Industries, alongside Davidson Kempner Capital Management, Qube Research & Technologies, Context Capital Management, Longaeva Partners, Wellington Management, Castleknight, Ghisallo Capital Management, LionTree Investment Fund, Javelin Venture Partners, and Irving Investors.
The financing consists of an initial $2.36 billion tranche at closing, followed by an additional $1 billion commitment from NVIDIA expected in mid-November 2026. The convertible loan notes will automatically convert into equity upon Nscale's initial public offering. For most investors, the notes will convert into ordinary shares; NVIDIA's notes will convert into nonvoting shares. The announcement did not disclose the financing's conversion valuation, interest rate, or maturity terms.
Nscale has reported more than $103 billion in total contracted value, reflecting its commercial agreements across its AI infrastructure business. This represents the company's aggregate contracted value rather than revenue earned or cash received, and the new financing will support development of physical and technological infrastructure to deliver services under existing agreements and pursue additional customer opportunities.
The company operates a vertically integrated business model combining cloud software, GPU computing infrastructure, data centers, and power generation. Its platform serves hyperscale technology companies, advanced AI model developers, AI-native businesses, and enterprises building and deploying artificial intelligence—moving beyond GPU rental to develop infrastructure spanning multiple components of the AI computing supply chain.
These include behind-the-meter power plants that provide electricity directly to computing facilities, potentially reducing dependence on conventional grid connections; liquid-cooled data centers designed to manage the substantial heat generated by high-density AI computing systems; and large-scale GPU clusters. Nscale is also developing software infrastructure enabling customers to access and manage computing resources, with services for model training and inference, distributed computing, Kubernetes-based workloads, virtual machine instances, networking, and storage.
The company intends to accelerate construction and expansion across a global data center portfolio spanning the United Kingdom, Norway, Iceland, Portugal, the United States, and other international markets. The planned IPO represents a potential next stage in its financing strategy, allowing participating investors to provide capital before the offering while receiving equity upon completion. However, the announcement does not establish a definitive IPO date or valuation.
Goldman Sachs & Co. served as placement agent for Nscale in connection with the financing.
"This marks a milestone for Nscale as we continue scaling our full-stack AI infrastructure to meet unprecedented global demand," said Josh Payne, Founder and CEO of Nscale. "With the backing of these world-class investors, we are strongly positioned to accelerate our data center buildouts globally."