Nscale, a London-based cloud computing firm specializing in artificial intelligence, is currently engaged in discussions to secure up to $3.5 billion in financing before its planned initial public offering in the United States. This pre-IPO funding includes approximately $1.5 billion in convertible notes, with Daniel Loeb's Third Point expected to lead this round. Additionally, Nscale aims to obtain around $2 billion in financing from Nvidia Corp. Goldman Sachs is reportedly assisting with these fundraising efforts. The company, founded two years ago, has rapidly expanded its operations and is now central to Europe's AI infrastructure development.
The company is briefing investors on its substantial contract book, which now totals roughly $103 billion, a significant increase from the $51 billion reported just a month prior. A major contributor to this growth is a $45 billion deal signed on August 26 with Anthropic for computing power, which anchors Nscale's upcoming flotation. Notably, this capacity was previously offered to Microsoft and Google, who both passed on the opportunity after reviewing their data center portfolios and capital spending. Nscale is illustrating to investors that it could potentially generate annual revenue of about $18.1 billion and adjusted earnings of approximately $13.6 billion, though these figures are presented as illustrative and not formal guidance. For context, Nscale's revenue for the entirety of 2025 was approximately $33 million, with its most recent quarter surpassing $100 million.
Nscale has already taken steps towards its public listing, having hired Goldman Sachs and JPMorgan to prepare for an IPO. The company's board includes notable figures such as Sheryl Sandberg and Nick Clegg. The convertible notes being offered are priced at a double-digit discount to the IPO valuation, with the discount narrowing as the valuation rises, capping at $30 billion. Nscale has also secured financing for its European operations, including $790 million in debt from a consortium of banks and Eksfin, Norway's state export finance agency, for its Narvik project in northern Norway. Nvidia's potential $2 billion investment would strategically align with Nscale's substantial orders for Nvidia's Vera Rubin GPUs, approximately 194,000 units, effectively financing a major buyer of its chips.
