British AI cloud provider Nscale announced $3.36 billion in convertible loan note financing on September 25, led by Third Point. The transaction adds capital for expanding the company's AI infrastructure ahead of a planned initial public offering.

The headline amount includes two distinct components: an initial $2.36 billion tranche at closing and a further $1 billion commitment from NVIDIA, with funding expected in mid-November 2026. The full amount should therefore not be read as cash already received. TechCrunch separately reported the same financing structure.

Funding the physical AI stack

Nscale says the proceeds will accelerate expansion of its vertically integrated platform, spanning behind-the-meter power plants, liquid-cooled data centers and large GPU clusters. Its customers include hyperscalers, frontier model developers and enterprises running AI workloads.

Participants named in the announcement include funds managed by Apollo, Citadel, Hudson Bay Capital, Abu Dhabi Investment Council and 8090 Industries. Goldman Sachs acted as placement agent.

The company also reported more than $103 billion in total contracted value. That is a company-disclosed contract measure, not revenue already recognized or cash collected.

Conversion depends on an IPO

The loan notes automatically convert into ordinary shares when Nscale completes its IPO; NVIDIA's notes convert into non-voting shares. The financing announcement does not itself establish that a public listing has been completed.

For AI infrastructure, the deal illustrates how providers are securing capital for power, cooling and compute capacity before reaching public markets. Nscale's disclosure also cautions that expected tranche closings and intended uses of proceeds remain subject to risks and uncertainties.