Nscale, an AI cloud and data center company, raised $3.36 billion ahead of its initial public offering following disclosure of its IPO prospectus.

AI cloud and data center infrastructure company Nscale has raised $3.36 billion in pre-IPO funding from a consortium of investors led by hedge fund Third Point. The funding round also includes commitments from Nvidia, Apollo, Citadel, Hudson Bay Capital, Abu Dhabi Investment Council, and 8090 Industries.

Under the terms, Nscale will receive $2.36 billion up front, with an additional $1 billion from Nvidia due by mid-November 2026. These convertible notes will automatically convert to ordinary shares upon the company's IPO, though Nvidia's stake will remain non-voting.

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

UK-based Nscale filed its IPO prospectus last Friday ahead of a Nasdaq listing and is targeting a valuation near $30 billion. For the six months ended June 30, 2026, the company reported revenue of $140.6 million, representing 1,252 percent year-over-year growth. Losses, however, widened to $1.02 billion from $368.9 million in the same period a year prior.

The investment thesis rests on Nscale's growth trajectory and contracted commitments. The company has secured $103 billion in total contracted value, underpinned primarily by agreements with Anthropic and Microsoft. Its current portfolio comprises five operational data centers offering 55 megawatts of capacity, with twelve facilities in various stages of development.

The cornerstone of Nscale's expansion is the Monarch Compute Campus in West Virginia, a 2,250-acre facility acquired in March 2026. The campus is designed to eventually accommodate 8 gigawatts of capacity, with Phase I targeting 2 gigawatts online by the first half of 2028. Power will be supplied by Caterpillar G3500 series natural gas generators.

Anthropic has committed to a six-year lease for more than 400 megawatts at Monarch, while Microsoft has secured 1.35 gigawatts of capacity. For the Microsoft deployment, Nscale is configuring a large-scale GPU cluster based on Nvidia Vera Rubin NVL72 processors.

The prospectus underscores the execution challenge ahead. Nscale plans to operate 461,000 GPUs, predominantly Vera Rubin clusters, yet currently has only five percent of that capacity energized across its data centers.