Nscale Seeks $3.5 Billion Pre-IPO Funding, Includes Nvidia and Third Point

Nscale, a cloud infrastructure provider, is seeking approximately $3.5 billion in pre-IPO funding from potential investors, according to a source familiar with the matter.

The company intends to sell up to $1.5 billion of convertible notes to a group of investors and aims to secure around $2 billion from Nvidia.

Goldman Sachs is working on the fundraising, with New York-based hedge fund Third Point set to lead the convertible note investment.

The convertible notes are being offered at a double-digit discount to Nscale's IPO price, which would be adjusted up to a $30 billion valuation, above which the conversion price would remain unchanged.