Nvidia Backs Nscale with $3.36 Billion Pre-IPO Funding Round

Nscale, a London-based AI infrastructure company, has secured $3.36 billion in pre-IPO financing from investors led by hedge fund Third Point and chipmaker Nvidia.

The deal includes a $1 billion commitment from Nvidia, which will receive non-voting shares in the arrangement. The conversion price for the investment will be determined at a double-digit discount from the eventual IPO price, capped at a valuation ceiling of $30 billion.

Nscale's origin story is one of strategic pivoting. Founded by Josh Payne in May 2024 as an offshoot of a crypto mining operation, the company recognized that the GPU infrastructure and energy procurement expertise needed for Bitcoin mining overlapped with what the booming AI sector demanded.

The deal is structured in two chunks, with an initial tranche of $2.36 billion set to convert into ordinary shares once Nscale completes its IPO. Nvidia's $1 billion investment is expected to activate by mid-November.