Nscale seeks up to $3.5 billion in pre-IPO financing

Nscale, a company focused on artificial intelligence cloud computing, is seeking pre-IPO financing and plans to raise up to $3.5 billion. According to sources familiar with the matter, the London-based company intends to offer investors up to $1.5 billion in convertible bonds and is seeking around $2 billion in financing support from Nvidia. Sources indicate that Third Point, led by Daniel Loeb, will lead the investment in convertible bonds, with Goldman Sachs participating in the fundraising arrangements. After this round, Nscale also plans to carry out an initial public offering, which has reportedly aimed to raise about $3 billion. In presentations to investors, Nscale stated that its total contract value is approximately $10.3 billion, including a $4.5 billion computing power supply agreement with Anthropic. The company expects future annual revenue of around $1.81 billion and adjusted EBITDA of approximately $1.36 billion, but emphasized these figures are only illustrative estimates and not official guidance. Nscale is building a large data center campus in Norway for use by Microsoft and is developing major projects in West Virginia, USA. The company has already purchased about 194,000 Nvidia Vera Rubin GPUs.