Nscale, a London-based artificial intelligence infrastructure company, is in advanced discussions to raise approximately $3.5 billion in pre-initial public offering (IPO) financing. The substantial funding round is expected to include a strategic investment of $2 billion from Nvidia and $1.5 billion in convertible notes led by hedge fund Third Point. Goldman Sachs is reportedly managing the fundraising process. This financing effort precedes a potential IPO for Nscale, which could occur as early as the end of September 2026.
The significant capital raise follows Nscale's recent announcement of a six-year, $45 billion deal with AI research firm Anthropic. This agreement, for computing power from Nscale's West Virginia data center, has contributed to a projected revenue backlog that Nscale has briefed investors as reaching $103 billion. This figure represents contracted leases rather than recognized sales, and its conversion into operating revenue is a key focus for potential investors. The Anthropic deal alone accounts for a substantial portion of this projected backlog.
Founded in 2024, Nscale has experienced rapid growth. The company's recent Series C funding round in March 2026 valued it at $14.6 billion. Prior to this, Nscale raised $1.1 billion in a Series B round in March 2026, which was described as the largest such round in European history at the time. An earlier Series A round in December 2024 secured $155 million. Nscale's investor base already includes prominent technology firms such as Nvidia, Microsoft, and OpenAI.
The proposed $3.5 billion financing includes convertible notes priced at a double-digit discount to the eventual IPO price, with the conversion capped at a $30 billion valuation. This potential valuation represents a significant increase from its most recent private valuation of $14.6 billion. The strategic investment from Nvidia is consistent with its approach of backing key suppliers and customers in the AI infrastructure sector.
Nscale aims to provide AI-focused cloud infrastructure, often referred to as "neocloud." The company's West Virginia data center is slated to utilize Nvidia's next-generation Vera Rubin chips, with operations expected to commence in late 2027. The Anthropic deal, specifically, will involve approximately 460 megawatts of power capacity. Nscale has also recently entered into an agreement to supply at least $3.5 billion of computing capacity to robotics startup Figure and invested in that company, and agreed in July to acquire software startup Anyscale for $1.65 billion.
The company's rapid ascent highlights the intense demand for AI compute power and the competitive landscape of AI infrastructure providers. Rivals such as Crusoe and CoreWeave are also active in this market, with Crusoe recently closing a $3 billion round at a $30 billion valuation. The success of Nscale's potential IPO will likely depend on its ability to convert its substantial projected revenue backlog into recognized sales and manage customer concentration risks.