British AI infrastructure company Nscale has announced $3.36 billion in convertible loan-note financing ahead of its planned U.S. stock-market debut. Third Point led the deal, with Nvidia, Apollo-managed funds, Citadel, Hudson Bay Capital, Abu Dhabi Investment Council, 8090 Industries and other investors participating.
The financing gives Nscale $2.36 billion at closing. Nvidia has committed another $1 billion that is expected to fund in mid-November 2026. Nscale said the notes will automatically convert into ordinary shares when its initial public offering is completed, while Nvidia's portion will convert into non-voting shares.
Expanding the physical AI stack
Nscale describes itself as a full-stack AI cloud provider spanning software, GPU compute, data centers and power generation. The company said it will use the new capital to expand that infrastructure, including behind-the-meter power plants, liquid-cooled data centers and large GPU clusters.
That buildout is capital-intensive even by cloud-computing standards. Nscale says it has more than $103 billion in total contracted value, a figure that represents signed contracts rather than current revenue. Its projects include large data-center campuses in Norway and West Virginia, according to TechCrunch's report on the financing.
The IPO terms are still taking shape
Nscale filed its IPO paperwork in September and plans to list on the New York Stock Exchange. TechCrunch reports that the Financial Times expects the company to seek a valuation of about $35 billion, while Bloomberg reports that Nscale aims to raise $3 billion in the offering. Those figures remain reported targets, not completed IPO terms.
The convertible financing ties the investors' eventual equity to that offering. It also gives Nscale fresh money before the public sale, while leaving the Nvidia tranche and the IPO itself subject to future completion. Nscale's release warns that the expected closing of later financing and its intended use of proceeds are forward-looking statements.
