AI infrastructure firm Nscale said it has raised $3.36 billion via convertible loan notes, led by Third Point.
The financing consists of an initial $2.36 billion tranche at closing and an additional $1 billion commitment from Nvidia, with funding expected in mid-November, according to a Friday announcement.
Citadel, Hudson Bay Capital, Abu Dhabi Investment Council, 8090 Industries, and funds managed by Apollo also participated in the convertible funding round, among others. Nscale said Goldman Sachs acted as placement agent for the capital raise.
"This marks a milestone for Nscale as we continue scaling our full-stack AI infrastructure to meet unprecedented global demand," Nscale founder and CEO Josh Payne said. "With the backing of these world-class investors, we are strongly positioned to accelerate our data center buildouts globally."
The notes are convertible into ordinary shares, or non-voting shares in Nvidia's case, automatically upon completion of Nscale's initial public offering, the S-1 registration statement for which was filed on Sept. 18.
Scaling AI cloud services
The UK-based firm said its full-stack AI cloud platform serves hyperscalers, frontier model labs, AI natives, and enterprises building and scaling AI. The fresh capital will be used to expand the platform, including behind-the-meter power plants, liquid-cooled AI data centers, and large-scale GPU clusters, Nscale added.
However, on Thursday, analysts at Bernstein said just $2.6 billion of Nscale's $103 billion in total contracted value for AI infrastructure opportunities is currently active.
The research and brokerage firm said much of the backlog remains subject to financing, construction, hardware deployment, and customer acceptance, with client Anthropic able to terminate individual tranches of its Nscale deal if certain delivery requirements aren't met.