AI Infrastructure IPO Funding
AI Infrastructure Provider Nscale Seeks $3.5 Billion Ahead of US IPO
Anonymous
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Nscale was founded in 2024 after being spun out of crypto miner Arkon Energy, making its rapid expansion and planned listing particularly recent.
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The company’s reported backlog also includes at least $3.5 billion in agreements with robotics startup Figure and a growing data-center campus in Norway serving Microsoft.
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The proposed convertible notes would be priced at the eventual IPO price less a double-digit percentage discount, with the discount mechanism capped at a $30 billion valuation; Nscale’s last formal private valuation was $14.6 billion in March.
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Nscale has been assembling additional debt to build capacity, including a $900 million credit line in July and roughly $3 billion in project loans for two U.S. campuses.
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The Anthropic agreement is not yet contributing to reported revenue: Nscale is expected to begin supplying power from a West Virginia campus that has not yet started operations.
Nscale, a London-based AI infrastructure company, is seeking up to $3.5 billion in pre-IPO funding and could raise an additional $3 billion through a U.S. listing, according to Crypto Briefing. The company claims a staggering $103 billion backlog of contracts, including a $45 billion, six-year deal with Anthropic, but generated only about $33 million in revenue in 2025 and currently runs at an annualized rate of $400 million to $500 million.
Nvidia is expected to contribute roughly $2 billion to the pre-IPO round, with the remainder coming through convertible notes led by Third Point, Qatar Tribune reported. The gap between Nscale's contracted future revenue and its current earnings highlights the enormous capital demands of AI data centers and the risks of valuing companies on promised capacity rather than actual sales.
From Crypto Miner to AI Infrastructure Giant in Months
Nscale was founded in 2024 after spinning out from crypto miner Arkon Energy, making its rapid rise to a $14.6 billion valuation (as of March) particularly striking. The company has assembled billions in debt to build capacity, including a $900 million credit line in July and roughly $3 billion in project loans for two U.S. campuses, according to TechCrunch.
Anthropic Deal Powers $103 Billion Backlog
Nscale's eye-watering backlog includes the $45 billion Anthropic agreement, at least $3.5 billion in contracts with robotics startup Figure, and a growing data-center campus in Norway serving Microsoft, per Crypto Briefing. However, the Anthropic contract is not yet generating revenue: Nscale is expected to begin supplying power only after a West Virginia campus starts operations.
Convertible Notes Offer Discount With Built-In Valuation Cap
The pre-IPO financing package includes $1.5 billion in convertible notes priced at the eventual IPO price minus a double-digit percentage discount, WeEx reported. The discount mechanism is capped at a $30 billion valuation, a significant premium to Nscale's last formal private valuation of $14.6 billion in March.
Revenue Reality Lags Behind Contract Hype
Nscale's $103 billion backlog masks a stark earnings gap. The company generated only $33 million in revenue in 2025 and now runs at an annualized rate of $400 million to $500 million, according to TechBuzz AI. Most contracted revenue remains years away as data centers are built, leaving investors betting heavily on execution rather than current cash flow.
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