Nscale, a British full-stack AI cloud platform, announced on Friday that it has secured $3.36 billion in financing via convertible loan notes. The funding round was led by the hedge fund Third Point and included participation from new and existing investors, including Nvidia, Apollo, Citadel, and Hudson Bay Capital, among others.
The financing is structured in two tranches: an initial $2.36 billion available immediately at closing, and an additional $1 billion commitment from Nvidia expected in mid-November 2026. The loan notes are set to convert into equity shares automatically upon the completion of Nscale's initial public offering (IPO).
The capital is intended to accelerate the expansion of Nscale's vertically integrated AI cloud platform, which covers infrastructure from power plants to liquid-cooled data centers and large-scale GPU clusters. The company is currently developing several large data center campuses, including sites in Norway and West Virginia.
Nscale, which was spun out from the Australian cryptocurrency mining company Arkon Energy two years ago, has amassed over $103 billion in total contracted value (TCV). Following its IPO filing last week, the company is expected to be valued at $35 billion on the NYSE, according to the Financial Times, and is seeking to raise $3 billion, according to Bloomberg.
Sources
- Ahead of US IPO, British AI neocloud Nscale secures $3.36B in convertible financing （TechCrunch AI, 2026-09-25）
- Nscale