Nscale raised $3.36 billion in pre-IPO convertible notes to expand AI cloud infrastructure capacity.

Nscale Limited has raised $3.36 billion in pre-IPO convertible financing to expand its AI cloud infrastructure operations. The capital raise, led by Third Point and including participation from NVIDIA, Apollo funds, Citadel, Hudson Bay Capital, Abu Dhabi Investment Council, and 8090 Industries, reflects the substantial infrastructure investment required to meet growing demand for AI computing capacity.

The financing consists of an initial $2.36 billion tranche funded at closing and an additional $1 billion commitment from NVIDIA, expected to fund in mid-November 2026. The convertible loan notes will automatically convert into ordinary shares upon Nscale's initial public offering, with NVIDIA's investment converting into non-voting shares.

Nscale operates a vertically integrated model encompassing power generation, liquid-cooled AI data centers, GPU computing clusters, and cloud software for AI training and inference workloads. This approach extends to behind-the-meter power plants that supply electricity directly to computing facilities, and liquid-cooled data centers designed to support the dense GPU systems required for large-scale AI deployments.

"This marks a milestone for Nscale as we continue scaling our full-stack AI infrastructure to meet unprecedented global demand," founder and CEO Josh Payne said. "With the backing of these world-class investors, we are strongly positioned to accelerate our data center buildouts globally."

The company serves hyperscalers, frontier AI model developers, AI-native companies, and enterprises building and deploying artificial intelligence applications. By controlling more of the infrastructure stack—from power generation through computing hardware and cloud software—rather than relying on third-party arrangements, Nscale aims to coordinate power availability, data center capacity, and computing resources as AI deployments expand globally.

Access to power and data center capacity has become a central constraint on AI computing expansion. Building large GPU clusters requires substantial spending on processors and networking equipment alongside electrical infrastructure, cooling systems, and facilities capable of operating increasingly power-dense hardware. Nscale's single integrated platform addresses these layered requirements.

The capital raise also included 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.

With more than $103 billion in total contracted value across its business, Nscale will use the new capital to accelerate infrastructure development globally. Goldman Sachs & Co. LLC acted as placement agent for the transaction.