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Nscale Seeks $3.5 Billion in Pre‑IPO Financing

The package would pair discounted convertible notes with a roughly $2 billion Nvidia investment to strengthen the company before a planned U.S. IPO.

Overview

  • Nscale is negotiating about $3.5 billion in bridge capital after reports on Friday that talks are advanced but not final.
  • The proposed structure would sell up to $1.5 billion of convertible notes at a double‑digit discount with conversion capped at a $30 billion valuation and aim to raise about $2 billion from Nvidia.
  • Goldman Sachs is advising the fundraising while hedge fund Third Point is set to lead the convertible note tranche, according to people briefed on the talks.
  • Nscale’s fundraising push follows large customer commitments that lifted its reported contracted backlog to roughly $103 billion, highlighted by a six‑year, $45 billion deal with Anthropic.
  • If completed, the financing would tighten commercial and financial ties between a major GPU supplier and a large compute operator and could shape access to chips, funding and pricing as Nscale moves toward an expected IPO.