Nscale seeks $3.5B in pre-IPO funding ahead of U.S. listing

London-based AI cloud computing company Nscale is in talks with investors to raise as much as $3.5 billion in financing ahead of a planned U.S. initial public offering, according to a Bloomberg News report on Friday.tradingview+1

The Deal Structure

The company is seeking to sell up to $1.5 billion in convertible notes to a group of investors, with New York-based hedge fund Third Point, led by Daniel Loeb, set to lead that investment, Reuters reported. Nscale also aims to secure approximately $2 billion in financing from Nvidia ↗ 0.84%. Goldman Sachs The Goldman Sachs Group, Inc. ↗ 0.07% is working on the fundraising.bloomberg+1

The convertible notes are being offered at a double-digit discount to Nscale's IPO price, with that discount narrowing as the valuation rises and ceasing to adjust at a $30 billion valuation. The pre-IPO raise would come on top of a separate IPO that Bloomberg News previously reported could raise up to $3 billion and price as soon as this month.reuters+2

A Rapid Ascent

Nscale's trajectory has been swift. Founded roughly two years ago, the company runs and leases data center capacity for AI workloads, operating sites in Norway, the UK, Portugal, and Texas. It has been telling prospective investors that its total contracted revenue now stands at roughly $103 billion, according to The Information, as reported by Reuters — double the $51 billion figure cited just four weeks earlier. Much of that increase stems from a $45 billion deal with Anthropic, agreed on August 26, for computing power, according to The Next Web.thenextweb+2

The company currently has about 25,000 GPU chips active, with approximately 289,000 active and contracted as of the second quarter of 2026. Most of its active chips are Nvidia Blackwell models, with contracts in place for about 194,000 of Nvidia's next-generation Vera Rubin GPUs.silicon

Path to Public Markets

If the listing proceeds, Nscale would become the latest in a wave of AI infrastructure companies tapping public markets. The IPO is planned for New York, with Goldman Sachs and JPMorgan Chase ↘ 0.94% advising. An earlier Bloomberg report noted the offering could come as soon as September.finance.yahoo+2

Deliberations on both the pre-IPO financing and the listing are ongoing, and the size and investor composition could still change, Reuters reported. No final decisions have been made.reuters