Nscale is in talks to raise $3.5 billion in pre‑IPO financing, including $1.5 billion of convertible notes and $2 billion from Nvidia, ahead of a potential IPO later this month. The figures come from a TechCrunch report that cites Bloomberg.
Financing structure and recent history
The proposed capital package splits into two components. Bloomberg, as reported by TechCrunch, says the company is looking to sell $1.5 billion in convertible notes – a loan that can later convert into equity – to a group of investors. At the same time, it is seeking an additional $2 billion in financing from Nvidia.
Both amounts are part of a broader effort to shore up the balance sheet before the anticipated public offering later in September. The total $3.5 billion would dwarf Nscale’s earlier fundraising rounds.
| Round | Amount | Date | Key investors |
|---|---|---|---|
| Series A | $155 million | December 2024 | Undisclosed |
| Series B | $1.1 billion | March 2026 | Nvidia (participant), Aker (lead) |
| Pre‑IPO talks | $3.5 billion | September 2026 | Convertible‑note investors, Nvidia |
| Source: TechCrunch (citing Bloomberg) | |||
Strategic backing from Nvidia
Nvidia’s involvement goes beyond a simple equity stake. The $2 billion financing request is described as “additional financing from Nvidia” in the TechCrunch excerpt. Nvidia also participated in Nscale’s March 2026 Series B round, a $1.1 billion raise led by investment fund Aker.
For Nvidia, the commitment signals a strategic push into European AI‑compute infrastructure, complementing its own hardware business. By securing financing for a fast‑growing provider, Nvidia can potentially lock in a downstream customer for its GPUs and related technologies.
Sector‑wide implications
The size of the pre‑IPO raise makes it the largest funding round yet reported for a European AI‑compute provider. If the financing closes, it will provide Nscale with the runway to scale its data‑center capacity, which is already underscored by a $45 billion contract with US‑based Anthropic.
TechCrunch notes that “Nscale recently signed a large deal with Anthropic worth approximately $45 billion.” Such a contract, combined with the new capital, could accelerate the company’s ability to meet the growing demand for AI training clusters in Europe, a market traditionally dominated by US and Asian players.
Analysts see the move as part of a broader capital rush into AI infrastructure. The $3.5 billion figure dwarfs the $155 million Series A and even the $1.1 billion Series B, suggesting investors view AI compute as a critical bottleneck in the AI value chain.
What remains unknown
The filings do not disclose the exact terms of the convertible notes, nor the identity of the investors behind them. Nscale’s chief executive and headcount are not listed in the packet, and the company’s own website has not been consulted for confirmation.
Furthermore, the timing of the IPO remains tentative – the company has said it “may go public as early as later this month,” but no definitive date has been set.
Outlook
Should the financing close and the IPO proceed, Nscale could become a bellwether for European AI‑compute funding. The infusion of capital, coupled with Nvidia’s strategic backing, may encourage other European startups to pursue larger, US‑linked financing rounds.
Investors will be watching the conversion of the $1.5 billion in notes into equity, the deployment of the $2 billion from Nvidia, and the execution of the Anthropic contract. The outcome will shape expectations for future capital allocation across the AI‑compute sector on both sides of the Atlantic.