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Nscale, the London-headquartered AI infrastructure company, has entered into an unsecured convertible loan agreement with Nvidia worth roughly $2 billion. The deal is part of a broader pre-IPO fundraising push that could total around $3.5 billion as the company positions itself for a US listing.
The convertible notes from Nvidia sit alongside an additional $1.5 billion tranche reportedly led by Third Point, both offered at a discount to Nscale’s expected IPO valuation.
From crypto mining to AI hyperscaler
Nscale originated as a spin-out from Arkon Energy, a company focused on crypto mining infrastructure. The company has since repositioned itself as a provider of AI data center solutions, expanding operations across the US, Europe, and Norway. Its customer roster now includes contracts with Microsoft and Anthropic, among others.
Nscale has reportedly secured customer contracts totaling approximately $103 billion, with an average duration of 5.7 years.
In March 2026, Nscale raised $2 billion in a Series C round that valued the company at $14.6 billion. Five months later, in August 2026, it closed roughly $3 billion in senior secured delayed-draw term loans to fund AI campuses in Texas and North Carolina.
The company has filed for a proposed US IPO targeting mid-September 2026.
Why Nvidia keeps showing up
Nvidia’s involvement with Nscale isn’t new. The chipmaker previously participated in GPU-backed financing arrangements with the company and issued warrants related to Nscale back in 2025. The convertible loan notes represent a deepening of that relationship.
Convertible notes function as debt that can convert into equity, typically at a discount to the IPO price. The unsecured nature of these notes means Nvidia would stand behind the $3 billion in senior secured term loans Nscale already has outstanding in any recovery scenario.
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