TLDR
- Nscale is seeking $3.5 billion in pre-IPO funding, with Nvidia potentially contributing $2 billion
- Up to $1.5 billion in convertible notes will be led by hedge fund Third Point
- Goldman Sachs is managing the fundraising process
- Nscale has $103 billion in contracted business, including a $45 billion deal with Anthropic
- The IPO could raise an additional $3 billion, with a target valuation above $30 billion
Nscale, a London-based AI cloud infrastructure company, is in talks to raise $3.5 billion before going public. The round includes $1.5 billion in convertible notes and a potential $2 billion investment from chipmaker Nvidia.
NSCALE SEEKS $3.5B IN PRE-IPO FINANCING
Nscale is in talks to raise up to $1.5B through convertible notes, with Third Point set to lead, while separately seeking about $2B in financing from $NVDA, per Bloomberg.
The AI cloud company could then raise another ~$3B in an IPO.… pic.twitter.com/CadecHWpcm
— Wall St Engine (@wallstengine) September 4, 2026
Goldman Sachs is running the fundraising effort. Hedge fund Third Point, run by Daniel Loeb, is set to lead the convertible note portion of the deal.
The convertible notes are being offered at a double-digit discount to Nscale’s eventual IPO price. That discount holds until the company hits a $30 billion valuation. Above that level, the conversion price stays fixed.
Nscale was last valued at $14.6 billion in March, after closing a $2 billion Series C funding round. The company was founded in 2024.
Anthropic Deal Anchors a $103 Billion Contract Book
A big part of Nscale’s pitch to investors is its contract backlog. The company says it has about $103 billion in contracted business.
The largest deal is a six-year, $45 billion agreement with Anthropic. Under that deal, Anthropic will rent AI computing capacity from Nscale’s data center campus in West Virginia.
Nscale told investors its contracts could support around $18.1 billion in annual revenue and roughly $13.6 billion in adjusted EBITDA. The company was clear that these are examples, not formal guidance.
Nscale owns and operates its own data centers, GPUs, and software stack. Most of its active chips are Nvidia Blackwell GPUs. The company has also contracted for about 194,000 Nvidia Vera Rubin GPUs.
Expansion Into Robotics and Software
Beyond cloud compute, Nscale is moving into robotics. It recently agreed to provide robotics startup Figure with at least $3.5 billion in computing capacity.
Nscale also plans to become a shareholder in Figure as part of that deal. In July, Nscale agreed to buy AI software company Anyscale for $1.65 billion.
The company is also building a large data center campus in Norway. That facility is being developed to serve Microsoft.
Another major campus is planned in West Virginia, separate from the Anthropic facility already operating there.
Nscale’s IPO could raise an additional $3 billion on top of the pre-IPO round. Deliberations on the size and mix of investors are still ongoing and could change.
Nvidia has not yet commented publicly on the potential $2 billion investment. Third Point and Nscale also declined to comment to Reuters.
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