British AI infrastructure startup Nscale secures $3.36B convertible financing ahead of US IPO

Nscale, a British AI infrastructure company, announced it secured $3.36 billion in convertible financing led by hedge fund Third Point. The round is structured as a convertible note that will convert into equity shares upon completion of the company’s planned US IPO.

Nvidia, an existing investor, will provide an additional $1 billion in mid-November as part of the same convertible financing agreement. The funds are intended to fuel the construction of large-scale AI data centers.

The company filed IPO paperwork last week and is expected to list on the New York Stock Exchange. The Financial Times reported the company is targeting a valuation of $35 billion at listing.

Nscale also disclosed in its IPO filing that it has amassed over $103 billion in contracts since spinning out from Australian cryptocurrency mining company Arkon Energy two years ago. The company is currently developing multiple data center campuses, including sites in Norway and West Virginia.