Nscale Raises $3.36B, Eyes $35B IPO Valuation

AI data center builder Nscale has secured $3.36 billion in funding ahead of its planned IPO. The capital comes in two tranches: $2.26 billion from a consortium including Third Point, Apollo, and Citadel, with Nvidia contributing the remaining $1 billion in mid-November. Funds are raised via convertible notes that convert to shares post-IPO. Nscale is targeting a $35 billion valuation and boasts over $103 billion in total contracted value, with Microsoft and Anthropic as key clients. The company builds vertically integrated AI data centers, including a 2-gigawatt off-grid campus in West Virginia. It also acquired AI software firm Anyscale for $1.65 billion in June.