British AI infrastructure company Nscale has secured $3.36 billion in convertible financing ahead of a planned US stock-market listing. Hedge fund Third Point led the round, which includes $2.36 billion available now and another $1 billion expected from existing investor Nvidia in mid-November.
The notes are designed to convert into equity when Nscale completes its initial public offering. The company filed IPO paperwork last week and is reportedly seeking to raise about $3 billion at a valuation near $35 billion on the New York Stock Exchange. Those targets remain expectations rather than completed terms and can change with market conditions.
Nscale was spun out of Australian cryptocurrency miner Arkon Energy two years ago and now develops large AI data-center campuses, including projects in Norway and West Virginia. Its filing says it has accumulated more than $103 billion in contracts. The size and structure of the new financing reflect the heavy upfront costs of power, land, chips and construction: Nscale is taking on funding that will become ownership before public investors have had a chance to price the business through an IPO.