British AI neocloud Nscale has secured $3.36 billion in convertible note financing ahead of its planned U.S. IPO later this year, the company announced on Friday. The round highlights the enormous capital needed to build out AI data center infrastructure.
The investment is led by hedge fund Third Point and includes $2.36 billion available to Nscale immediately, along with a further $1 billion from existing investor Nvidia due in mid-November. The notes will convert into equity once the IPO is completed.
Nscale filed its IPO paperwork last week and is expected to list on the NYSE at a valuation of around $35 billion, according to the Financial Times, while Bloomberg reported the company is seeking to raise $3 billion in the offering.
Spun out of Australian cryptocurrency miner Arkon Energy two years ago, Nscale has built up more than $103 billion in contracts, according to its IPO filing. The company is currently developing several large data center campuses to support AI workloads, including sites in Norway and West Virginia, as it scales capacity for its customers.
