British AI infrastructure company Nscale raised $3.36 billion in convertible note financing led by Third Point, with Nvidia committing $1 billion of the total, the company said in a press release Friday. TechCrunch reported the deal ahead of Nscale's planned U.S. initial public offering.
The financing splits into an initial $2.36 billion tranche available now and Nvidia's $1 billion tranche expected in mid-November, according to Nscale. The notes convert automatically into ordinary shares, or non-voting shares in Nvidia's case, once Nscale completes its IPO.
Other participants include funds managed by Apollo, Citadel, Hudson Bay Capital, the Abu Dhabi Investment Council, Wellington Management and Qube Research & Technologies, Nscale said. Chief executive Josh Payne called it "a milestone for Nscale as we continue scaling our full-stack AI infrastructure to meet unprecedented global demand."
Nscale, spun out of Australian crypto miner Arkon Energy two years ago, has more than $103 billion in total contracted value and filed IPO paperwork last week seeking a New York Stock Exchange listing under the ticker NSCL, TechCrunch reported. Press estimates cited by TechCrunch put its target valuation between $30 billion and $35 billion, up from the $14.6 billion valuation of its March 2026 Series C.
Neoclouds racing to go public before the AI capital cycle turns are stacking convertible debt on top of hyperscaler and lab contracts. Nscale's numbers are now a benchmark for what an AI infrastructure term sheet looks like heading into a listing.