AI cloud company Nscale is looking to secure $3.5 billion in pre-IPO funding from Nvidia and Third Point.

      Nscale is negotiating to secure up to $3.5 billion ahead of its impending US listing, which includes $1.5 billion in convertible notes led by Third Point and approximately $2 billion from Nvidia. The company is informing investors that its total contracts amount to about $103 billion, with the majority of the increase attributed to a $45 billion deal with Anthropic, which Microsoft and Google chose not to pursue.

      As per Bloomberg News on Thursday, Nscale is in discussions to raise as much as $3.5 billion prior to its stock market introduction, according to sources familiar with the situation. Founded two years ago in London, the company is now pivotal to Europe’s AI infrastructure development.

      Nscale aims to raise up to $1.5 billion through convertible notes, with Daniel Loeb’s Third Point taking a leading role in this effort. Additionally, around $2 billion is expected to come from Nvidia, while Goldman Sachs is facilitating the fundraising process.

      Nscale has informed investors that its contracts total roughly $103 billion, up from $51 billion reported four weeks ago. A significant part of this increase is due to a deal where Anthropic agreed to pay $45 billion for computing power, a key arrangement for the company's planned public offering.

      This capacity was initially proposed to other firms. According to Semafor, Microsoft opted out during a review of its data center portfolio over the summer, and Google also declined after reviewing its own capital expenditures.

      The company has projected potential annual revenues of about $18.1 billion, with adjusted earnings around $13.6 billion, although these figures are described as illustrative rather than formal guidance.

      For context, Nscale reported approximately $33 million in revenue for all of 2025, with its latest quarter exceeding $100 million.

      The pricing for the convertible notes features a double-digit discount relative to the IPO, which decreases as the valuation climbs and ceases adjustments once it reaches $30 billion.

      The European segment of the business is funded by European capital. The Narvik project in northern Norway has secured $790 million in committed debt from several financial institutions, including ABN AMRO, DNB, Nordea, SEB, and Eksfin, Norway’s export finance agency.

      This project exploits cold air and Nordic hydropower, with Microsoft as a customer. Norwegian export credit supports projects that utilize Norwegian energy and labor.

      Nvidia’s investment will complement Nscale’s order book. The company has already contracted for around 194,000 Vera Rubin GPUs, meaning the chipmaker will assist in financing a purchaser of its products.

      The board comprises notable figures such as Sheryl Sandberg and Nick Clegg, the former UK deputy prime minister. Ongoing discussions may influence the size of the offering and the involved investors, with no definitive conclusions reached yet.

      The planned listing will take place in New York. As Europe’s largest AI infrastructure firm, partially financed by a Nordic state lender and integrated into UK sovereign AI strategies, Nscale aims to launch its share sale in the United States.