Nscale, a UK-based artificial intelligence infrastructure firm established only two years ago, is reportedly seeking to raise $3.5 billion in pre-IPO funding as it prepares for a potential public offering later this month. The company plans to sell $1.5 billion in convertible notes, financial instruments that can be converted into stock, to a group of investors, while also pursuing an additional $2 billion investment from Nvidia. Nvidia, a key player in AI hardware, previously participated in Nscale’s $1.1 billion Series B funding round earlier this year, which was led by investment fund Aker and hailed as Europe's largest of its kind.

The company’s rapid ascent in the AI compute market reflects the growing demand for cloud-based AI infrastructure. Nscale recently secured a substantial $45 billion contract with Anthropic, an AI research company, highlighting its role as a crucial partner for AI model training and deployment. Following this deal, Nscale has reportedly projected revenue of about $103 billion based on signed customer contracts, although that number reflects future lease agreements rather than current sales.

Nscale’s planned IPO could capitalize on this momentum, tapping into investor appetite for AI technology firms as compute resources become an increasingly strategic asset. The firm’s ability to attract major financial backers like Nvidia and Aker underlines its positioning within a competitive AI compute industry that is expanding rapidly in response to advances in machine learning and large-scale model development.

Despite the impressive fundraising and planned public debut, Nscale and Nvidia declined to comment on the financing discussions, leaving some details unconfirmed. However, the company’s aggressive growth strategy and sizable deals indicate that it is aiming to become a dominant supplier of AI infrastructure, meeting the soaring global demand for high-performance computing capabilities needed to power next-generation AI applications.