Pre-IPO Funding
Nvidia-Backed Nscale Raises $3.36 Billion in Pre-IPO Financing for AI Expansion
Anonymous
Nscale raised $3.36 billion through convertible notes in a pre-IPO financing led by Third Point, including a $2.36 billion initial tranche and a further $1 billion commitment from Nvidia expected in mid-November. The notes will convert into shares when the company completes its planned U.S. IPO, for which it filed paperwork to list on the New York Stock Exchange; the filing has not yet set the offering’s size or price range. Investors include Nvidia, funds managed by Apollo, Citadel, Hudson Bay Capital, Abu Dhabi Investment Council and others. Nscale says it has more than $103 billion in contracted business and will use the funding to expand its AI cloud infrastructure, including data centers, power capacity and GPU clusters. Its first-half 2026 revenue was $140.6 million, while its net loss widened to about $1.02 billion, underscoring the challenge of building capacity to fulfill its large commitments.
Key Points
1
A major part of Nscale’s contracted business is a reported $45 billion agreement with Anthropic for computing capacity. The company is also developing a large data-center campus in Norway to serve Microsoft, with another major campus planned in West Virginia.
2
By the end of August, Nscale had about 461,000 GPUs active or contracted, alongside its more than $103 billion contract value—an indicator of the substantial infrastructure it must build to deliver on those commitments.
3
Nscale was founded in 2024 as a spin-off from Arkon Energy. Over its first two years, it grew its contracted value from $100 million to more than $103 billion, while its power pipeline expanded from 750 megawatts to more than 10 gigawatts.
4
Goldman Sachs acted as placement agent for the convertible-note financing. Separately, Aker, a Norwegian investment company, is a major Nscale shareholder.
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