Nvidia Banks $2 Billion in Convertible Notes from Nscale Ahead of Planned IPO
Nvidia has agreed to provide Nscale, an AI infrastructure company, with $2 billion in unsecured convertible loan notes. The deal is part of a broader pre-IPO fundraising push that could total around $3.5 billion. This funding will help the company position itself for a US listing.
Nscale originated from Arkon Energy, a crypto mining infrastructure company. It has since repositioned itself as an AI data center solutions provider, with customers including Microsoft and Anthropic. The company has secured contracts worth approximately $103 billion, with an average duration of 5.7 years.
The convertible loan notes will allow Nvidia to convert the debt into equity at a discount to Nscale's expected IPO valuation. This deepens the relationship between the two companies, as Nvidia previously participated in GPU-backed financing arrangements and issued warrants related to Nscale in 2025.