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 the expansion of its vertically integrated AI cloud platform, including data centers, power infrastructure, and large-scale GPU computing clusters.
The round attracted a group of new and existing investors, including NVIDIA, funds managed by Apollo, Citadel, Hudson Bay Capital, Abu Dhabi Investment Council, and 8090 Industries.
Additional participants 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.
The financing consists of an initial $2.36 billion tranche at closing, followed by an additional $1 billion commitment from NVIDIA, with that funding expected in mid-November 2026.
The structure provides Nscale with substantial near-term capital alongside a further commitment intended to support its continued infrastructure expansion.
The convertible loan notes will automatically convert into equity when Nscale completes its initial public offering.
For most investors, the notes will convert into ordinary shares. NVIDIA’s notes will instead 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 amount represents the company’s reported aggregate contracted value rather than revenue already earned or cash received.
The new financing will support Nscale’s efforts to develop the physical and technological infrastructure required to deliver services under its existing agreements and pursue additional customer opportunities.
Nscale operates a vertically integrated business model that combines 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.
Rather than focusing exclusively on renting GPU capacity, the company is developing infrastructure spanning multiple components of the AI computing supply chain.
These include behind-the-meter power plants, liquid-cooled data centers, and large-scale GPU clusters.
Behind-the-meter power infrastructure can provide electricity directly to computing facilities, potentially reducing dependence on conventional grid connections.
Liquid cooling is designed to manage the substantial heat generated by high-density AI computing systems, particularly those used for training and running advanced models.
Nscale is also developing software infrastructure that allows customers to access and manage its computing resources.
Its platform includes services for model training and inference, distributed computing, Kubernetes-based workloads, virtual machine instances, networking, and storage.
The company intends to use the additional financing to accelerate construction and expansion across its global data center portfolio.
Nscale’s infrastructure strategy includes locations in the United Kingdom, Norway, Iceland, Portugal, and the United States, alongside other international markets.
The company’s planned IPO represents a potential next stage in its financing strategy.
The convertible structure allows participating investors to provide capital before the offering while receiving equity when the IPO is completed.
However, the announcement does not establish a definitive IPO date or valuation, and the additional NVIDIA funding remains scheduled for a future closing.
The deal provides Nscale with additional capital as it pursues large-scale AI infrastructure development and expands its capacity to serve customers requiring substantial computing resources.
Support: Goldman Sachs & Co. served as placement agent for Nscale in connection with the financing.
KEY QUOTES:
“This marks a milestone for Nscale as we continue scaling our full-stack AI infrastructure to meet unprecedented global demand. With the backing of these world-class investors, we are strongly positioned to accelerate our data center buildouts globally.”
Josh Payne, Founder And CEO Of Nscale
