London-based AI cloud infrastructure provider Nscale is in negotiations to raise up to US$3.5 billion in pre-IPO financing ahead of a planned New York listing, according to reports by Reuters, TechCrunch, and The Next Web. The capital raise includes up to US$1.5 billion in convertible notes led by hedge fund Third Point and about US$2 billion from Nvidia, with Goldman Sachs working on the fundraising.
The Financial Architecture and Valuation Targets
Founded in 2024, Nscale owns and operates data centers, GPUs, and a software stack for large-scale GPU-powered AI compute. The new pre-IPO convertible notes, spearheaded by Third Point, are reportedly being offered at a double-digit discount to the eventual IPO price. This discount adjusts as Nscale’s valuation rises, up to a $30 billion valuation threshold, after which the conversion price would not change.
Goldman Sachs has been involved in the fundraising, setting the stage for the company’s anticipated public market debut.
Contracted Revenue and the Anthropic Pipeline
Nscale has told prospective investors that its contracts total roughly $103 billion, according to reports from The Next Web and TechCrunch. A primary catalyst for this figure is a six-year, $45 billion agreement signed with Anthropic. Under the terms of the deal, Anthropic will rent AI computing capacity housed at Nscale’s West Virginia data-center campus.
The company has contracted for about 194,000 Nvidia GPUs, according to The Next Web. This heavy hardware commitment highlights the tight interdependencies linking modern AI compute providers directly to silicon manufacturers, long-term power supply, and massive capital expenditure pipelines.
Boardroom Governance and Infrastructure Partners
The rapid ascent of the startup is mirrored by its corporate roster. Financings of this magnitude demonstrate how modern artificial intelligence infrastructure is increasingly assembled through complex webs of customer leases, vendor equity, and project finance. With terms still under active discussion, market participants continue to monitor how Nscale’s massive GPU commitments will translate into recognized revenue as the company approaches its anticipated public market debut.
