AI cloud company Nscale is aiming to secure $3.5 billion in funding before its IPO, with support from Nvidia and Third Point.

      Nscale is currently negotiating to secure up to $3.5 billion in funding prior to its US initial public offering, which includes $1.5 billion in convertible notes led by Third Point and approximately $2 billion from Nvidia. The company has informed investors that its total contract value is around $103 billion, with a significant increase attributed to a $45 billion deal with Anthropic that both Microsoft and Google declined.

      According to Bloomberg News on Thursday, Nscale is looking to raise as much as $3.5 billion before going public. Established two years ago, the London-based firm is now at the forefront of Europe’s AI infrastructure development.

      The company is aiming to generate up to $1.5 billion in convertible notes, to be led by Daniel Loeb’s Third Point. Additionally, roughly $2 billion is expected to come from Nvidia, with Goldman Sachs involved in facilitating the funding.

      Nscale has communicated to investors that its contract portfolio is valued at approximately $103 billion, which is a significant increase from $51 billion reported four weeks ago. A major portion of this increase stems from the $45 billion agreement with Anthropic for computing power, which serves as the foundation for the upcoming IPO.

      This capacity was initially considered by other companies. According to Semafor, Microsoft opted out during the summer following a review of its data center strategy, while Google also declined after assessing its capital expenditures.

      The company is suggesting to investors that it could achieve annual revenues of around $18.1 billion and adjusted earnings of about $13.6 billion, although it clarifies that these figures should be viewed as illustrative rather than formal projections.

      To provide context, Nscale recorded approximately $33 million in revenue for the entirety of 2025, while its most recent quarter surpassed $100 million.

      The convertible notes are being offered at a double-digit discount relative to the IPO price. This discount diminishes as the company’s valuation increases, ceasing to adjust once it reaches a valuation of $30 billion.

      The European segment of the business is funded by European investors. The Narvik project in northern Norway received $790 million in committed debt from ABN AMRO, DNB, Nordea, SEB, and Eksfin, Norway’s state export financing entity.

      This facility utilizes cold air and Nordic hydropower, with Microsoft as its customer. Norwegian export credit is designed to support projects that utilize Norwegian power and workforce.

      Nvidia’s investment will complement Nscale’s order book. The company has secured contracts for about 194,000 Vera Rubin GPUs, meaning the chip manufacturer will be aiding in financing a customer for its chips.

      The board comprises Sheryl Sandberg and Nick Clegg, former UK deputy prime minister. Discussions are ongoing, and both the funding amount and investor participation may still evolve, with no conclusive decisions made as of yet.

      The IPO is slated for New York. As Europe’s largest AI infrastructure company, partly financed by a Nordic state lender and integrated into UK government AI strategies, Nscale aims to offer its shares in the US market.