Nscale announced a $3.36 billion pre-IPO financing through convertible loan notes, with the proceeds intended to accelerate its AI cloud and data-center buildout. The company combines software, GPU computing and power infrastructure for hyperscalers, frontier-model labs, AI-native developers and enterprises that train or run models.

Third Point led the financing, which comprises an initial $2.36 billion tranche at closing and a separate $1 billion commitment from Nvidia expected to fund in mid-November. Funds managed by Apollo and Citadel were among the other participants. The notes convert automatically into shares when Nscale completes its IPO; Nvidia would receive non-voting shares. Until then, the instrument is debt, not a conventional equity round.

For customers, Nscale’s stack runs from the power source to the software interface. Users can train, fine-tune and run inference on GPU capacity. An earlier SEC filing says access is priced mainly per GPU-hour, while storage is generally billed per gigabyte per month. Nscale also supplies networking, data-center and power infrastructure underneath.

The physical network spans 17 sites, according to SiliconANGLE. Nscale owns five campuses and works with partners at the other 12. Its West Virginia project is designed around a two-gigawatt on-site microgrid and energy storage; Nscale says the campus will not draw from the public grid when the power system comes online in early 2028.

The commercial opportunity is concentrated. SiliconANGLE reported that Nscale expects most of the future revenue represented by its total contracted value to come from contracts with Microsoft and Anthropic. The financing therefore funds new capacity against contracts heavily tied to two customers, even before the notes become shares at the planned IPO.