British AI infrastructure company Nscale is seeking $3.5 billion in new financing ahead of a possible initial public offering as soon as this month, according to a report from Bloomberg. The two-year-old firm is looking to sell $1.5 billion in convertible notes to a group of investors, and it is also pursuing $2 billion more in funding from Nvidia. A successful raise would add to the company鈥檚 already substantial backing from the chipmaker, which participated in its Series B round in March.
That earlier round raised $1.1 billion and was led by investment fund Aker, with Nscale calling it the largest Series B in European history. The company鈥檚 Series A round in December 2024 brought in $155 million. Nscale鈥檚 growth comes as AI infrastructure startups benefit from intense demand for computing power, which has become a competitive asset for technology firms racing to deploy large models.
Nscale recently signed a major deal with AI lab Anthropic valued at roughly $45 billion. Reports earlier this week indicated that Nscale has told potential investors it expects approximately $103 billion in revenue from that arrangement. That figure does not represent current sales but rather a projection based on signed customer leases, according to The Information.
The company, founded just two years ago, has not yet confirmed a target date for its IPO, but the reported timing suggests it could move quickly after completing the financing talks. Nvidia鈥檚 potential $2 billion contribution would make it a cornerstone investor in Nscale鈥檚 pre-IPO push, deepening a relationship that began with its Series B participation. Convertible notes would give early investors a path to equity if and when Nscale lists on a public exchange.
For US technology observers, the story highlights how European AI infrastructure firms are attracting American capital and competing for contracts with major US-based AI developers. Anthropic, which is headquartered in the US, has become a key customer for Nscale, and Nvidia鈥檚 ongoing investment ties the American chip giant鈥檚 fortunes to the growth of overseas compute providers. The size of the projected revenue tied to the Anthropic deal underscores how much future value is being priced into pre-IPO companies in this sector.
Nscale鈥檚 financing efforts also reflect a broader trend of AI compute providers raising large sums to build data centers and secure hardware supply. The company鈥檚 rapid ascent from a Series A to a potential multibillion-dollar offering fits a pattern seen across the industry, where infrastructure firms have become essential middlemen between chipmakers and AI laboratories. Whether Nscale can close the full $3.5 billion remains to be seen, but the reported talks show investor appetite for compute assets remains strong.
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