Nvidia-Backed Nscale Raises $2 Billion Ahead of Planned IPO

TLDR

• Nscale raised $2 billion in a Series C round, valuing the British AI firm at $14.6 billion
• The round was led by Norway’s Aker and 8090 Industries, with Nvidia, Citadel, Dell, and Jane Street among investors
• Former Meta executives Nick Clegg and Sheryl Sandberg will join the board, along with former Yahoo President Susan Decker
• Nscale has hired Goldman Sachs and JPMorgan as underwriters ahead of a planned IPO
• The funds will go toward expanding data centre capacity to serve customers like Microsoft and OpenAI

British AI company Nscale has raised $2 billion in a Series C funding round, pushing its valuation to $14.6 billion, the company announced on Monday, March 9.

The round was led by Norway’s Aker and 8090 Industries. Other investors included Nvidia, Citadel, Dell, and Jane Street.

Nscale was founded in 2024. The company owns and operates its own data centres, GPUs, and software stack to provide large-scale AI computing power.

Its customers include Microsoft and OpenAI, two of the largest players in the AI industry right now.

The new capital will be used to expand Nscale’s data centre capacity to meet growing demand for AI computing.

Three high-profile names are joining Nscale’s board as part of this announcement. Former Meta executive Nick Clegg, former Meta COO Sheryl Sandberg, and former Yahoo President Susan Decker will all take board seats.

Clegg served as Vice President of Global Affairs at Meta before stepping down in 2024. Sandberg was COO of Meta for 14 years before leaving in 2022.

IPO Plans in Motion

The fundraise comes as Nscale prepares for a potential public listing. The company has already hired Goldman Sachs and JPMorgan as underwriters for the IPO.

Sources told Reuters earlier this year that the timeline for the listing has not yet been set.

Going public would give Nscale access to even more capital as competition in the AI infrastructure space grows.

Nvidia’s Role in the Round

Nvidia’s participation in the round is worth noting in context. The chipmaker has been investing in AI infrastructure companies that rely on its GPUs to power their services.

Nscale’s business model is built around GPU-powered computing, making Nvidia a natural backer.

Dell also joined the round. The company has been pushing deeper into AI infrastructure through its own hardware and server business.

Aker, the Norwegian industrial group that led the round, has been actively expanding into technology and energy transition investments in recent years.

8090 Industries co-led the round alongside Aker, though the firm has a lower public profile than some of the other investors involved.

Nscale has not disclosed revenue figures, but the $14.6 billion valuation reflects strong investor appetite for companies building the physical infrastructure that powers AI models.

The company said the IPO preparations are ongoing, with Goldman Sachs and JPMorgan already engaged as underwriters.

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