Nscale secures $3.36bn to expand AI data centre footprint
Nscale has raised $3.36 billion through convertible loan notes, in a round led by Third Point and backed by investors including Nvidia, Apollo-managed funds, Citadel, and others. The company will receive $2.36 billion at closing, with a further $1 billion commitment from Nvidia expected in mid-November 2026. The notes will convert into ordinary shares when Nscale completes an initial public offering, and the CEO said the money will help accelerate global data centre buildouts.
Nscale's new capital is structured as convertible notes, meaning the debt can become equity if the company lists publicly. Third Point led the round, with Nvidia, Apollo-managed funds, Citadel, Hudson Bay Capital, Abu Dhabi Investment Council, 8090 Industries and several other investors participating.
The proceeds arrive in stages: $2.36bn at closing and another $1bn from Nvidia anticipated around mid-November 2026. CEO Josh Payne said the funding supports scaling AI infrastructure and speeding up data centre construction worldwide.
The raise may affect communities hosting new data centres, through construction jobs, energy demand, water use and local land decisions. It could also shape access to AI services and costs for businesses and consumers, as infrastructure becomes tied to a small group of large investors. Whether those effects are broadly shared may depend on grid planning, transparency and competition.