Nscale has entered an unsecured convertible loan agreement with Nvidia worth roughly $2 billion, part of a pre-IPO push that could total around $3.5 billion. The London-based AI infrastructure company, a spin-out from a crypto mining operation, has filed for a US listing targeting mid-September 2026.
Nscale, the London-headquartered AI infrastructure company, has entered into an unsecured convertible loan agreement with Nvidia worth roughly $2 billion. The notes sit alongside an additional $1.5 billion tranche reportedly led by Third Point, both offered at a discount to Nscale's expected IPO valuation, as part of a broader pre-IPO push that could total around $3.5 billion ahead of the company's US listing.
From crypto mining to AI hyperscaler
Nscale originated as a spin-out from Arkon Energy, a crypto mining infrastructure company, before repositioning itself as a provider of AI data center solutions across the US, Europe, and Norway. Its customer roster now includes contracts with Microsoft and Anthropic, and the company has reportedly secured customer contracts totaling approximately $103 billion, with an average duration of 5.7 years.
The fundraising history moves fast. 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 since 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, and the new convertible notes deepen that relationship.
Convertible notes function as debt that can convert into equity, typically at a discount to the IPO price. Because the new notes are unsecured, Nvidia would stand behind the $3 billion in senior secured term loans Nscale already has outstanding in any recovery scenario.
Source: Crypto Briefing
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