AI cloud company Nscale has raised $3.36 billion in pre-IPO funding from investors led by hedge fund Third Point. Investors include Nvidia, Apollo, Citadel, Hudson Bay Capital, Abu Dhabi Investment Council, and 8090 Industries. Nscale will receive $2.36 billion upfront, with Nvidia providing a further $1 billion by mid-November 2026. The notes will convert into ordinary shares when Nscale goes public, with Nvidia receiving a non-voting stake.
"This marks a milestone for Nscale as we continue scaling our full-stack AI infrastructure to meet unprecedented global demand," said Josh Payne, founder and CEO of Nscale. "With the backing of these world-class investors, we are strongly positioned to accelerate our data center buildouts globally."
UK-based Nscale has filed its IPO prospectus as it prepares to list on Nasdaq, with the company reportedly targeting a valuation of around $30 billion to fund its AI data center expansion. Nscale reported $140.6 million in revenue for the first half of 2026, up 1,252% year-over-year, while losses increased to $1.02 billion from $368.9 million a year earlier. The company has $103 billion in contracted value, largely from deals with Anthropic and Microsoft. It currently operates five data centers with 55MW of capacity, with 12 more under development.
Nscale’s Monarch Compute Campus in West Virginia is its largest planned project. The 2,250-acre site, acquired in March 2026, could support up to 8GW of capacity, with the first 2GW expected online by H1 2028. Power will come from Caterpillar G3500 natural gas generators. Anthropic has agreed to take more than 400MW at the site under a six-year deal, while Microsoft has contracted 1.35GW. Nscale plans to deploy Nvidia Vera Rubin NVL72 GPUs for Microsoft. 
