Nscale seeks about $3.5 billion pre-IPO funding, source says
NVDA•Background on Nscale
Reuters reported last month that Anthropic had signed a six-year, $45 billion agreement to rent AI computing capacity from Nscale's West Virginia data center campus.
Nscale was valued at $14.6 billion in March, after raising $2 billion in a Series C funding round.
Founded in 2024, Nscale owns and operates its own data centers, graphics processing units and software stack to deliver large-scale, GPU-powered AI compute.
Nscale seeks pre-IPO funding
Cloud infrastructure provider Nscale is in talks with potential investors to raise about $3.5 billion in pre-IPO funding, a source familiar with the matter said on Friday.
Nscale intends to sell as much as $1.5 billion of convertible notes to a group of investors and aims to secure about $2 billion from Nvidia, the source said.
Fundraising terms and investor interest
Goldman Sachs is working on the fundraising, with New York-based hedge fund Third Point set to lead the convertible note investment, the person added.
The convertible notes are being offered at a double-digit discount to Nscale's IPO price, the source said. The discount would be adjusted up to a $30 billion valuation, above which the conversion price would remain unchanged, the source said.
