AI Cloud Firm Nscale Seeking $3.5B in Pre-IPO Financing from Nvidia and Third Point
Nscale, a two-year-old London company, boasts contract totals reaching $103 billion, nearly doubling its previous figure. The firm is poised to list on the New York Stock Exchange and is in discussions to secure up to $3.5 billion in pre-IPO funding, including $1.5 billion in convertible notes led by Third Point and approximately $2 billion from Nvidia.
(Source: Bloomberg News)
Nscale’s growth is attributed mainly to a $45 billion deal with Anthropic, a deal that both Microsoft and Google declined. The company projects annual revenue of about $18.1 billion and adjusted earnings around $13.6 billion, though it labels these figures as illustrative rather than formal guidance.
In contrast to its modest 2025 revenue of approximately $33 million, Nscale’s most recent quarter exceeded $100 million. The convertible notes are priced at a double-digit discount to the IPO, which narrows as valuation increases and stops adjusting at $30 billion.
The European company’s funding has strong regional ties; its Narvik project in Norway secured $790 million in committed debt from prominent European banks and Eksfin, Norway’s state export finance agency. This site leverages cold air and Nordic hydropower, with Microsoft as its customer.
Nvidia’s investment would complement Nscale’s significant orders for its Vera Rubin GPUs, totaling nearly 194,000 units. The company’s board includes prominent figures such as Sheryl Sandberg and Nick Clegg. While discussions continue, the funding details could still evolve, and no final decisions have been made.