Nscale raises $3.36bn in convertible notes ahead of planned IPO
Third Point led the round for the London-based AI cloud company, and Nvidia's share will convert into non-voting stock once the listing completes
- Nscale lists its own UK data center at Loughton and a partner-run facility in Hayes
- The company says it serves hyperscalers, frontier model labs, AI-native companies and enterprises
- Other participants include Davidson Kempner Capital Management, Wellington Management and Qube Research & Technologies
A listed, well-funded Nscale looks like a lower-risk supplier for businesses signing multi-year AI compute commitments. Enterprise buyers competing for capacity with hyperscalers and model labs should ask what is actually allocated to customers of their size, at which site and from when. Ask too whether pricing and support terms are fixed in the contract or could change after the listing.
“This marks a milestone for Nscale as we continue scaling our full-stack AI infrastructure to meet unprecedented global demand.”Josh Payne, founder and chief executive, Nscale
Nscale said on 25 September that it had raised $3.36bn (£2.54bn) through convertible loan notes led by Third Point, ahead of its initial public offering (IPO). The notes convert automatically into ordinary shares when the IPO completes.
The money arrives in two parts: $2.36bn (£1.78bn) at closing and a $1bn (£755m) commitment from Nvidia, which Nscale expects to be funded in mid-November. Other backers include funds managed by Apollo, Citadel, Hudson Bay Capital, the Abu Dhabi Investment Council and 8090 Industries. Goldman Sachs acted as placement agent.
Nscale says it has more than $103bn (£77.8bn) in total contracted value. It gives no breakdown, and the figure can't be checked independently. The company says the capital will fund its vertically integrated platform, from behind-the-meter power plants to liquid-cooled data centers and large graphics processing unit (GPU) clusters. The release sets no date or venue for the listing and warns that actual results could differ materially from its forward-looking statements.
Sources
- Nscale, “Nscale Raises $3.36 Billion in Pre-IPO Convertible Financing”, press release, 25 September 2026. https://www.nscale.com/press-releases/pre-ipo-convertible-financing
