British neocloud Nscale has secured $3.36 billion in funding ahead of an IPO later this year, the company announced on Friday. This large funding round, structured as a convertible note, highlights the incredible capital needed to build an AI data center.
The new investment, led by hedge fund Third Point, includes $2.36 billion immediately available to the company and an additional $1 billion from existing investor Nvidia, which NScale expects to receive in mid-November. Once the IPO is completed, the notes will be converted into shares.
According to Bloomberg, Nscale filed IPO documents last week and is expected to be valued at $35 billion on the New York Stock Exchange, with the Financial Times reporting that it aims to raise $3 billion in its initial public offering.
Nscale has amassed $103 billion worth of contracts since its spinout from Australian crypto mining company Arkon Energy two years ago, according to its IPO filing.
The company is currently developing several large data center campuses, including in Norway and West Virginia.
