Nscale raises $3.36 billion in pre-IPO convertible financing

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.