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Nscale seeks $3.5bn in pre-IPO funding ahead of potential public listing

By: IDCNOVARegion: Europe
AI data center developer Nscale is reportedly in advanced discussions to raise $3.5 billion in pre-IPO financing, according to a Bloomberg report citing sources familiar with the matter. The fundraising effort comes just weeks before the company is expected to launch an initial public offering (IPO) targeting a $3 billion raise.

The pre-IPO round is structured in two parts: the company is seeking to sell up to $1.5 billion in convertible notes to a group of investors, with Third Point said to be leading that investment. The remaining $2 billion is expected to come from Nvidia, the report said. The convertible notes are being offered at a price equivalent to the IPO price minus a double-digit percentage discount, according to sources. Goldman Sachs is advising on the fundraising.

The move follows a period of intense financial activity for Nscale, which has been preparing for a public listing since late 2025. The company hired investment banks in February 2026 for the IPO effort, and in the same month signed a $1.4 billion delayed draw term loan backed by its GPU assets. In March, Nscale closed a $2 billion Series C round that valued the company at $14.6 billion. Since then, it has secured a $900 million revolving credit facility and obtained $790 million in financing for its data center project in Norway.

The fundraising momentum reflects the scale of Nscale's commercial commitments. According to a report from The Information, the company has accumulated roughly $103 billion in contracts, including major compute agreements with Anthropic and Microsoft. These contracts have an average duration of 5.7 years, implying contracted revenue of around $18 billion annually.

The pre-IPO financing underscores the capital intensity of the AI infrastructure sector, where operators must secure massive upfront funding to build out GPU-powered data centers and lock in long-term customer commitments. Nscale's ability to attract both strategic investors like Nvidia and institutional players such as Third Point highlights the growing convergence between AI hardware suppliers and data center developers.

People familiar with the matter cautioned that conversations regarding the pre-IPO raise are ongoing and subject to change. Nscale has not publicly confirmed the terms of the financing or the timeline for its potential listing.