Nscale secures $3.36B in pre-IPO funding for AI infrastructure

London-based AI infrastructure company Nscale has secured $3.36 billion in pre-IPO financing to accelerate its global data center construction. The funding is structured in two tranches: an initial $2.36 billion from a consortium including Third Point, Apollo, and Citadel, and a $1 billion commitment from Nvidia expected in mid-November.

The capital is being raised through convertible notes that will transform into ordinary shares upon Nscale’s planned listing on the New York Stock Exchange under the ticker NSCL. While the company aims for a $35 billion valuation, the pre-IPO conversion is subject to a $30 billion valuation cap.

Nscale, founded by Josh Payne, has transitioned from cryptocurrency mining to AI infrastructure. The company reports over $103 billion in total contracted value, with significant revenue expected from contracts with Microsoft and Anthropic. Its operations include a vertically integrated approach to building facilities and power infrastructure, such as a planned 2-gigawatt AI campus in West Virginia featuring an on-site microgrid.