Nscale announced $3.36 billion in pre-IPO convertible loan-note financing on September 25. The AI cloud operator said Third Point led the round, with participation from NVIDIA, Apollo-managed funds, Citadel, Hudson Bay Capital, Abu Dhabi Investment Council and other investors.
Two tranches, with one still pending
The company said $2.36 billion closed initially and a further $1 billion commitment from NVIDIA is expected to fund in mid-November 2026. The notes are designed to convert automatically into ordinary shares when Nscale completes its planned initial public offering; NVIDIA’s notes would convert into non-voting shares. Nscale’s SEC registration statement separately describes that automatic conversion structure.
Capital is aimed at power, data centers and GPU clusters
Nscale says it will use the financing to expand a vertically integrated AI-cloud platform spanning behind-the-meter power, liquid-cooled data centers and large GPU clusters. It also reports more than $103 billion in total contracted value, but that figure is company-supplied and was not independently audited for this article.
The announced total includes a future tranche rather than only cash already received. Closing the NVIDIA commitment, completing an IPO and executing the planned infrastructure buildout remain forward-looking events subject to financing, construction and market risk.