AI Compute Firm Nscale Eyes $3.5 Billion Pre-IPO Funding

AI Compute Firm Nscale Eyes $3.5 Billion Pre-IPO Funding

British artificial intelligence infrastructure company Nscale announced Friday that it is exploring an initial public offering as early as later this month. Prior to the anticipated listing, the two-year-old firm is engaged in negotiations to secure an additional $3.5 billion in capital, according to Bloomberg.

The fundraising strategy reportedly involves selling $1.5 billion in convertible notes to investors, alongside a request for an extra $2 billion in financing from Nvidia.

Nvidia has been a significant backer of the company, participating in its Series B round in March. That capital raise totaled $1.1 billion and was led by investment fund Aker. At the time, Nscale described the transaction as the largest Series B funding round in European history. The company previously raised $155 million during its Series A round in December 2024.

Requests for comment sent to Nscale and Nvidia were not immediately returned.

The financing push comes amid a surge in demand for AI compute resources, which have become a critical competitive asset. Earlier this year, Nscale secured a major agreement with Anthropic valued at approximately $45 billion. Recent reports indicate the company has shared projections with potential investors suggesting revenue could reach $103 billion following this deal, though The Information noted this figure is based on signed customer leases rather than current sales.

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