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Nscale Seeks $3.5 Billion in Pre‑IPO Financing With Nvidia in Talks

The proposed package would back a planned IPO by leaning on a $103 billion illustrative contract backlog that investors say is not current revenue

Overview

  • Nscale, which on Friday was reported to be negotiating the deal, is seeking about $3.5 billion made up of roughly $1.5 billion in convertible notes and about $2 billion in equity from Nvidia, with talks ongoing and not finalized.
  • The convertible notes are reported to carry a double‑digit discount to the IPO price and a conversion cap set at a $30 billion valuation, terms that would shape investor returns if the notes convert at the IPO.
  • Goldman Sachs is advising the fundraising and hedge fund Third Point is positioned to lead the convertible tranche, though the size and investor mix remain subject to change.
  • Nscale is pitching roughly $103 billion in contracted customer commitments to investors, a figure anchored by a reported $45 billion, six‑year Anthropic deal that the company describes as illustrative rather than current revenue.
  • The plan depends on Nscale delivering large GPU fleets, power and data‑center capacity on schedule and on continued access to Nvidia chips, a setup that raises execution risk and signals tighter commercial ties between chipmakers and infrastructure providers.