Nscale

AI Cloud Infrastructure · Neocloud · Data Centers

Funding

Nscale raises $3.36B pre-IPO convertible round led by Third Point, Nvidia

Its conversion price stops adjusting once valuation tops $30 billion, capping how much pre-IPO backers can capture from a runaway listing.

• Nscale closed a $3.36B pre-IPO convertible note round led by Third Point, with Nvidia committing a separate $1B tranche due in mid-November, a week after filing for a New York IPO under ticker NSCL.
• Nscale is a London-based 'neocloud' operator selling GPU compute, power and liquid-cooled data centers to hyperscalers and AI labs, reporting over $103B in total contracted value.
• The financing splits into a $2.36B tranche available immediately and Nvidia's $1B commitment landing in mid-November; the notes automatically convert into shares (non-voting for Nvidia) once Nscale's IPO completes.
• Conversion pricing is set at the IPO price minus a double-digit percentage discount, but that discount stops adjusting once valuation exceeds $30B, even as the IPO filing reportedly seeks up to $35B.
• Nscale reported just $140.6M in revenue for the first half of 2026, underscoring how early-stage cash flow is being financed against a multibillion-dollar infrastructure buildout.
• Nvidia has taken similar pre-IPO stakes elsewhere, including buying SB Energy shares at 90% of its IPO price this month, and now holds roughly $99B in equity across companies that buy its chips.
• The deal shows Nvidia increasingly financing the very customers that buy its GPUs, a circular dynamic investors are watching closely as AI infrastructure spending accelerates.