London-based AI cloud provider Nscale is in talks to raise as much as $3.5 billion ahead of a planned U.S. listing, according to Bloomberg, citing people familiar with the matter.
The potential funding would give Nscale more capital to secure chips, construct data centers and fulfill its AI computing contracts. For infrastructure vendors and channel partners, the proposed raise shows how access to hardware, power and financing is becoming a competitive advantage in the AI cloud market.
The proposed financing would include up to $1.5 billion through convertible notes and roughly $2 billion from Nvidia. Daniel Loeb’s Third Point is expected to lead the convertible investment, while Goldman Sachs is working on the fundraising.
The notes would reportedly convert at a double-digit discount to Nscale’s eventual IPO price, subject to a valuation cap of as much as $30 billion. The discussions remain ongoing, and the size and participating investors could still change.
Nscale pitches $103B in contracted commitments
Nscale is pitching investors on a rapidly expanding portfolio of contracted commitments. The company has told investors that the stated value of its contracts now totals about $103 billion, up from roughly $51 billion reported a month earlier, according to Bloomberg.
Much of the increase comes from a six-year, $45 billion agreement to provide AI computing capacity to Anthropic.
Nscale has presented investors with an illustrative scenario in which those contracts could eventually produce about $18.1 billion in annual revenue and $13.6 billion in adjusted EBITDA, Bloomberg reported. The company generated about $33 million in revenue in 2025 and more than $100 million in its most recent quarter, according to The Next Web. The $103 billion figure therefore represents potential future business rather than revenue Nscale has already earned.
Nvidia deepens its role
Nvidia’s potential $2 billion investment would deepen its financial relationship with the AI cloud provider. Nscale has contracted for about 194,000 GPUs based on Nvidia’s next-generation Rubin architecture, while most of its currently active accelerators use Nvidia’s Blackwell architecture, Bloomberg reported.
Nscale is also expanding beyond raw computing capacity. It agreed in July to acquire AI software company Anyscale for about $1.65 billion and recently agreed to provide at least $3.5 billion of computing capacity to robotics company Figure, while taking an equity stake in the startup.
The bigger bet
Nscale’s planned financing shows how much capital AI infrastructure companies now need to turn future computing demand into physical capacity. Data centers, power and thousands of advanced GPUs require enormous upfront spending, making access to both private and public capital increasingly important.
But Nscale’s numbers also highlight the central risk facing investors: a huge contract backlog is not the same as realized revenue. The company must build the infrastructure, deploy the hardware and deliver the contracted capacity before those projections can become actual business.
That makes the planned IPO less a bet on what Nscale earns today and more a bet on whether its rapidly expanding AI infrastructure commitments can be converted into durable cash flow.
Read more: Anthropic’s $45 billion Nscale agreement shows how the cloud provider plans to turn its expanding infrastructure footprint into long-term AI computing revenue.