NScale Raises $3.36 Billion in Pre-IPO Convertible Financing
Nscale Limited, an AI cloud platform company, has raised $3.36 billion through convertible loan notes ahead of its initial public offering (IPO). The round was led by Third Point and included participation from major investors such as NVIDIA, Apollo funds, Citadel, Hudson Bay Capital, Abu Dhabi Investment Council, and others. This funding will support the expansion of Nscale's vertically integrated AI cloud platform, which includes power plants, liquid-cooled data centers, and large-scale GPU clusters to meet growing demand for AI services. The financing consists of an initial $2.36 billion tranche at closing and a further commitment of up to $1 billion from NVIDIA expected in mid-November 2026. The convertible loan notes will automatically convert into ordinary shares (or non-voting shares, as with NVIDIA) upon completion of Nscale's IPO. Goldman Sachs & Co. LLC served as the placement agent for this capital raise. Nscale aims to scale its infrastructure globally and is positioned to capitalize on increasing demand in AI cloud services.
Topics: AI cloud computing convertible loan notes investments