London-based AI infrastructure firm Nscale has secured $2 billion in unsecured convertible loan notes from Nvidia. This agreement is part of a larger pre-IPO funding round aimed at raising up to $3.5 billion ahead of a planned listing in New York.
The financing includes an additional $1.5 billion tranche led by Third Point. Both portions of the funding are offered at a discount to the company’s anticipated IPO valuation. These notes are unsecured, placing them behind the $3 billion in senior secured debt the company already holds.
Nscale, a spin-out from crypto mining firm Arkon Energy, now focuses on AI data center solutions with operations in the US, Europe, and Norway. Its client base includes Microsoft and Anthropic, with total secured customer contracts reaching approximately $103 billion over an average term of 5.7 years.
The company’s financial history includes a March 2026 Series C round of $2 billion, which set its valuation at $14.6 billion. In August 2026, Nscale also closed $3 billion in senior secured loans to support the development of AI campuses in Texas and North Carolina.
Nvidia’s relationship with Nscale has evolved since 2025, when the chipmaker participated in GPU-backed financing and issued warrants. The current convertible notes represent a further expansion of the strategic partnership between the two companies.
