Nscale raises $3.36 billion in convertible notes ahead of planned IPO, with $1 billion from NVIDIA

Nscale, which operates a full-stack AI cloud platform, has raised $3.36 billion by issuing convertible loan notes ahead of its planned initial public offering. The investment firm Third Point led the financing.

Other backers in the round include NVIDIA, Citadel, Hudson Bay Capital, the Abu Dhabi Investment Council, 8090 Industries and funds managed by Apollo. The group combines investors that already held a stake in Nscale with new participants.

The money arrives in two parts. Nscale receives $2.36 billion when the deal closes, while NVIDIA has committed a further $1 billion that is expected to be funded in mid-November 2026. Once Nscale completes its IPO, the notes will automatically turn into ordinary shares, although NVIDIA will receive non-voting shares instead. Until that listing happens, the investors hold loan notes rather than stock in the company.

Nscale said the proceeds will speed up growth of its vertically integrated business, which spans power plants located behind the meter, liquid-cooled data centers and large GPU clusters. The company cites total contracted value of more than $103 billion. It described the expansion as a response to rising demand for AI cloud services.

The conversion of the notes depends on the offering being completed, which links this financing directly to Nscale's listing plans. NVIDIA's portion is scheduled to be funded after the initial tranche, rather than at closing.