British AI neocloud company Nscale has raised $3.36 billion in convertible financing as it prepares for its U.S. initial public offering (IPO) later this year. The funding round was led by hedge fund Third Point, with a significant $1 billion investment from existing backer Nvidia set to arrive in mid-November. This convertible note financing will convert into equity shares upon the completion of Nscale’s IPO.

Nscale recently filed its IPO paperwork and is expected to debut on the New York Stock Exchange with a valuation near $35 billion. The company aims to raise up to $3 billion through the public offering. The massive financing underscores the enormous capital demands needed to build AI data centers, which are central to Nscale’s strategy.

Since spinning out from Australian cryptocurrency miner Arkon Energy two years ago, Nscale has secured contracts valued at more than $103 billion. Its growth plans include developing large data center campuses in locations such as Norway and West Virginia, emphasizing global expansion to support AI workloads.

The company’s ability to attract top-tier investors like Nvidia and Third Point highlights strong market confidence ahead of the IPO. With the additional capital in hand, Nscale is positioned to accelerate its AI infrastructure rollout and capture a leading role in the rapidly growing AI cloud computing sector.