British neocloud provider Nscale said Friday it has raised $3.36 billion in convertible financing as it prepares to go public in the United States later this year.
The funding is structured as a convertible note and will convert into equity shares after the initial public offering closes. Hedge fund Third Point led the round, which makes $2.36 billion available to Nscale immediately. Existing investor Nvidia is contributing an additional $1 billion, which Nscale will receive in mid-November.
Nscale filed its IPO paperwork last week. The Financial Times reported that the company is expected to be valued at $35 billion on the NYSE, while Bloomberg reported that it is seeking to raise $3 billion in the offering. The size of the convertible round reflects the substantial capital that building out AI data centers demands.
According to its IPO filing, Nscale has accumulated more than $103 billion in contracts since it was spun out of Australian cryptocurrency mining company Arkon Energy two years ago. The company is at work on several large data center campuses, including sites in Norway and West Virginia.
The listing would put a British AI infrastructure provider on a major U.S. exchange, giving American investors direct exposure to the data center buildout that supports AI workloads. The involvement of Nvidia, already an investor in Nscale, ties the financing to a company whose chips underpin much of that computing capacity.
The convertible structure gives the new backers terms that become equity once Nscale is publicly traded, rather than at the time the money is committed. Third Point's role as lead investor places the hedge fund at the center of one of the larger private financings announced this year for AI data center infrastructure.
The offering and the financing are both tied to a timeline that runs through the rest of the year, with the Nvidia portion of the notes scheduled to arrive in mid-November and the IPO expected to follow.
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