Nscale Seeks $3.5 Billion Before IPO, With $2 Billion From Nvidia in View

Nscale is reportedly seeking up to $3.5 billion before a planned IPO. The London AI-cloud company has told prospective investors it has about $103 billion in revenue from signed customer leases—a projection, not current sales—making the conversion of those commitments into operating revenue central to its pitch.

People familiar with the matter said Nscale is discussing the financing with potential investors. The package would include up to $1.5 billion in convertible notes, debt that can later convert into stock, and about $2 billion from Nvidia. Nscale has said it may go public as early as later this month, though neither the financing nor a listing has been completed or announced.

The value Nscale is asking investors to underwrite

The company recently signed an approximately $45 billion deal with Anthropic. Its reported $103 billion figure is based on projected revenue from signed leases, rather than sales already recorded. That makes the distinction consequential: customer commitments can signal demand, but the reported figure does not represent current revenue.

A large shareholder already has substantial exposure

The talks would follow substantial earlier investment. Aker said it completed its participation in Nscale’s $2 billion Series C financing in March, investing $350 million in cash and becoming the company’s largest shareholder. In its May shareholder letter, Aker said Nscale represented about 26% of its gross asset value. Nscale’s December 2024 Series A raised $155 million.

A listing would add another financing test

Prior Bloomberg reporting said a Nscale IPO could raise another $3 billion. The immediate unresolved questions are whether the proposed financing closes and whether Nscale proceeds to market on that timetable. For public investors, the key measure would be how the company’s projected lease revenue develops into reported sales.