British AI Neocloud Nscale Raises $3.36B in Convertible Financing Ahead of NYSE IPO
The financing provides $2.36 billion immediately from Third Point and $1 billion from Nvidia in mid-November, with notes converting after the IPO. Nscale reportedly targets a $35 billion NYSE valuation and a $3 billion offering in 2026.
Nscale, a British AI neocloud company, has secured $3.36 billion in convertible financing ahead of its planned IPO later in 2026, the company announced on September 25, 2026. The funding will support the company’s ongoing AI data center buildout.
The round was led by hedge fund Third Point and includes $2.36 billion available to Nscale immediately, with an additional $1 billion coming from existing investor Nvidia in mid-November. The notes are structured to convert into equity shares once the IPO is completed.
Nscale filed its IPO paperwork the week prior to the announcement and is expected to list on the NYSE at a valuation of $35 billion, according to the Financial Times. The company is also seeking to raise $3 billion in the offering itself, Bloomberg reported.
Nscale was spun out of Australian cryptocurrency mining company Arkon Energy two years ago. Since then, it has accumulated over $103 billion in contracts, according to its IPO filing. The company is currently developing several large data center campuses, including locations in Norway and West Virginia.
The scale of the financing round reflects the substantial capital requirements involved in building out AI data center infrastructure. Should the IPO proceed as anticipated, the convertible notes from this round would transition into equity, making Third Point and Nvidia formal shareholders in the publicly listed company.