British AI neocloud Nscale has secured $3.36 billion in convertible financing ahead of its planned US IPO later this year. The round is led by hedge fund Third Point, with $2.36 billion available to the company immediately and an additional $1 billion coming from existing investor Nvidia in mid-November. The notes will convert into equity once the IPO is completed, according to the company's announcement on Friday.
The scale of the raise underscores how much capital is required to build out AI data center infrastructure. Nscale filed its IPO paperwork last week and is expected to be valued at $35 billion on the NYSE, per the Financial Times, while Bloomberg reports it is seeking to raise $3 billion in the offering.
Since being spun out of Australian crypto miner Arkon Energy two years ago, Nscale has accumulated over $103 billion worth of contracts, according to its IPO filing. The company is currently developing large data center campuses in Norway and West Virginia, and the new financing will support those buildouts ahead of its public market debut.