# Nscale seeks $3.5B pre-IPO financing amid AI infrastructure boom UK AI startup in talks for convertible notes and Nvidia funding ahead of potential public listing - **Source:** [TechCrunch](https://techcrunch.com) - **Published:** 2026-09-04 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/25e39258-8d25-444b-9926-9ae627895c6c ## Nscale's ambitious funding round The UK-based AI infrastructure provider is seeking $3.5 billion in pre-IPO financing, including $1.5 billion in convertible notes from investors and $2 billion from strategic partner Nvidia. This comes just two years after the company's founding, showcasing the rapid growth potential in AI infrastructure. Convertible notes offer investors the option to convert debt into equity during the IPO. ## Record-breaking funding history Nscale previously raised $1.1 billion in its Series B round in March, which it touted as the largest Series B in European history. The round was led by investment fund Aker, with participation from Nvidia. Earlier in December 2024, the company secured $155 million in Series A funding. These substantial rounds highlight investor confidence in AI infrastructure. ## Strategic partnership with Nvidia Nvidia's continued investment in Nscale, including participation in both Series B and current pre-IPO financing, signals a strong strategic alignment. As a leader in AI chips, Nvidia benefits from supporting complementary infrastructure providers. This partnership could give Nscale competitive advantages in hardware access and technical collaboration. ## Anthropic's massive $45B deal Nscale recently signed a landmark agreement with AI firm Anthropic worth approximately $45 billion. While not immediate revenue, this represents long-term customer commitments through signed leases. The deal demonstrates Nscale's ability to secure major clients in the competitive AI infrastructure market dominated by cloud providers. ## Projected $103B revenue pipeline Following the Anthropic deal, Nscale reportedly informed potential investors about $103 billion in projected revenue from signed customer leases. While not current sales, these projections indicate the company's growth potential in AI compute services. The Information reports these figures reflect multi-year contractual commitments. ## European AI infrastructure leadership Nscale's rapid ascent positions it as a European leader in AI infrastructure, challenging US-dominated cloud providers. The company's success reflects growing European tech ambitions and the global nature of AI infrastructure needs. Its UK base provides access to both European and US markets. ## Convertible notes strategy The $1.5 billion convertible notes offering allows investors to participate in Nscale's growth while mitigating some IPO risk. These instruments typically convert to equity at a discount during the public offering. This approach provides flexible financing while building investor relationships ahead of the listing. ## AI compute as competitive currency Nscale's funding surge underscores how AI compute has become a strategic resource, with infrastructure providers gaining outsized valuations. The company's ability to secure major financing and partnerships reflects the intense competition for AI infrastructure capacity as models grow more complex and resource-intensive. ## Sources covering this story - https://techcrunch.com/2026/09/04/ai-compute-provider-nscale-is-looking-for-3-5b-in-pre-ipo-financing/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._