UK AI neocloud Nscale closes $3.36B pre-IPO convertible, Nvidia backs
Nscale closed a $3.36B convertible loan note round on September 25 led by Third Point with a further $1B commitment from Nvidia in mid-November, to expand its full-stack AI cloud infrastructure.
Aggregated Yahoo Finance coverage on September 26 and SignalBase on September 28 reports that UK AI neocloud provider Nscale closed a $3.36 billion convertible pre-IPO financing led by hedge fund Third Point. The deal closed in two tranches: $2.36 billion at signing and a further $1 billion commitment from Nvidia expected in mid-November. Participants include Apollo, Citadel, Hudson Bay Capital, 8090 Industries, the Abu Dhabi Investment Council, Davidson Kempner Capital Management, Qube Research & Technologies, Wellington Management, and about ten other institutions.
Nscale operates a full-stack AI cloud platform spanning software, compute, and power, including a unified cloud layer for AI training and inference, liquid-cooled data centers, multi-megawatt GPU clusters, and behind-the-meter power plants. The company reports about $103 billion of total contracted value and positions itself as a vertically integrated provider from power to cloud. The convertible notes will convert automatically into ordinary shares at IPO, with Nvidia receiving non-voting shares upon conversion.
Last month Anthropic signed a six-year, $45 billion compute lease with Nscale, locking in 460 MW of power at Nscale’s West Virginia campus — Nscale’s largest disclosed customer contract. Nscale had filed its S-1 with the SEC on September 18 and 22 and is targeting a NYSE listing at about a $35 billion valuation with a $3 billion raise. Goldman Sachs acted as placement agent.