AI data center firm Nscale is looking to raise $3.5 billion in pre-IPO financing, according to a report from Bloomberg cited by Data Center Dynamics. The company is reportedly looking to sell up to $1.5 billion in convertible notes to a group of investors and is aiming to secure the other $2 billion from Nvidia. The notes are being offered at an equivalent of the IPO price minus a double-digit percentage discount, according to sources.
Third Point is said to be leading the convertible investment, while Goldman Sachs is working on the fundraising. The pre-IPO effort comes shortly after reports emerged that Nscale was targeting an initial public offering as soon as this month, which will target a $3 billion raise. Reports that Nscale was looking at going public have been mounting since October 2025, with the company hiring banks in February 2026 for the effort. That same month saw Nscale signing a $1.4 billion delayed draw term loan backed by its GPUs.
The following month, Nscale raised $2 billion in a Series C funding round that valued the company at $14.6 billion, and has since gone on to close a $900 million revolving credit facility and secure $790 million for its Norway data center project. The company has totted up some $103 billion in contracts, according to a report from The Information, having secured major compute agreements with the likes of Anthropic and Microsoft. The contracts run an average of 5.7 years in duration; thus, contracted revenue amounts to an annual average of around $18 billion.
Conversations regarding the pre-IPO raise remain ongoing and are subject to change. The report does not specify the timing of any potential closing, the identity of all investors beyond Third Point and Nvidia, or how the convertible notes and Nvidia financing might interact with the reported $3 billion IPO target. The evidence is based on a single secondary source citing people familiar with the matter, so the figures and structure should be treated as preliminary.