AI Cloud provider Nscale targets $3.5 billion pre-IPO financing ahead of New York debut
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London-based artificial intelligence cloud infrastructure provider Nscale is in advanced negotiations to secure up to $3.5 billion in pre-IPO financing, according to market reports. The massive capital raise comes as the two-year-old "neocloud" firm prepares for a New York initial public offering that could raise an additional $3 billion as early as this month.
The pre-IPO financing package, which Goldman Sachs is advising on, is structured into two main components: a $2 billion strategic check from chipmaker Nvidia and up to $1.5 billion in convertible notes led by Daniel Loeb's hedge fund, Third Point.
High-Growth Backlog Driven by Anthropic Anchor Deal
The fundraising push coincides with a dramatic expansion of Nscale's commercial order book. Briefings provided to prospective investors reveal that Nscale’s total contracted revenue backlog has reached $103 billion - more than double the $51 billion reported just four weeks prior.
The surge is anchored by a landmark six-year, $45 billion compute agreement signed with AI research lab Anthropic on August 26, under which Nscale will supply dedicated AI processing capacity from its data center campus in West Virginia.
Nscale has also secured compute contracts with major tech hyperscalers, including Microsoft and OpenAI, positioning the firm as a primary alternative to legacy cloud providers.
To support its expanding infrastructure, Nscale has contracted for approximately 194,000 next-generation Vera Rubin GPUs from Nvidia, explaining the semiconductor leader’s direct participation in the funding round as both a supplier and equity backer.
Regional Debt Financing and Governance Structure
While Nscale plans to list its shares on a U.S. exchange, its European footprint continues to draw backing from regional financial institutions. The company’s flagship Scandinavian project in Narvik, Norway - powered by hydroelectricity and running workloads for Microsoft - recently secured $790 million in debt financing backed by a syndicate including ABN AMRO, DNB, Nordea, SEB, and Norway’s state export credit agency, Eksfin.
Originally founded in 2024 by CEO Josh Payne after spinning out of crypto-mining infrastructure operator Arkon Energy, Nscale has rapidly assembled a high-profile corporate board, including former Meta Chief Operating Officer Sheryl Sandberg and former UK Deputy Prime Minister Nick Clegg.
Deliberations regarding the final allocation, check sizes, and participating institutions remain ongoing ahead of official S-1 filing disclosures.
