AI compute provider Nscale is looking for $3.5B in pre-IPO financing — SkimNews
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- Nscale, a two-year-old British AI infrastructure company, is in talks to raise $3.5 billion in pre-IPO financing and may go public as early as later this month.
- Nvidia is in discussions to provide $2 billion of the financing, with the remaining $1.5 billion coming from convertible notes sold to a group of investors, per Bloomberg.
- Nvidia previously participated in Nscale's $1.1 billion Series B round in March, led by investment fund Aker, which Nscale called "the largest Series B in European history."
- Nscale's December 2024 Series A round raised $155 million, showing the company's rapid fundraising trajectory ahead of its expected listing.
- Nscale recently signed a roughly $45 billion deal with Anthropic, and has told potential investors it projects approximately $103 billion in revenue from signed customer leases — not current sales, according to The Information.
Why it matters: Nscale's rapid ascent from a $155 million Series A to seeking $3.5 billion pre-IPO in roughly a year reflects how heavily Nvidia is concentrating its AI infrastructure bets on a small number of compute providers, with the company now valued off a $103 billion revenue projection rather than actual sales — a metric investors will scrutinize closely at IPO.
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