- Neocloud Nscale has raised $3.36 billion ahead of its planned IPO
- Third Point led the round; Nvidia contributed $1 billion
- Nscale has a total contracted value of $103 billion
Neocloud Nscale has raised $3.36 billion in funding ahead of its IPO. Led by Third Point, the round included new and existing investors, such as Nvidia, funds managed by Apollo, Citadel, Hudson Bay Capital, Abu Dhabi Investment Council and 8090 Industries.
Nscale is a full stack AI cloud platform serves hyperscalers, frontier model labs, AI natives and enterprises building and scaling AI. The company has a contracted pipeline totaling $103 billion. It plans to use the new funding to help scale its cloud platform – which encompasses data centers with behind-the-meter power generation, liquid cooling and large-scale GPU clusters – to meet customer demand.
"This marks a milestone for Nscale as we continue scaling our full-stack AI infrastructure to meet unprecedented global demand," CEO and Founder Josh Payne stated.
The new financing includes an initial $2.36 billion tranche that will be received at close and another $1 billion from Nvidia that is expected in mid-November of this year. The loan notes are "convertible into ordinary shares (or non-voting shares in the case of Nvidia) automatically upon completion of Nscale's initial public offering."
Additional investors that participated include: Davidson Kempner Capital Management, Qube Research & Technologies (QRT), Context Capital Management, Longaeva Partners L.P., Wellington Management, Castleknight, Ghisallo Capital Management, LionTree Investment Fund, L.P., Javelin Venture Partners and Irving Investors.
Nscale's IPO plans
Nscale filed paperwork for an initial public offering on the New York Stock Exchange on September 18, 2026. The number of shares to be offered and the price range for the proposed offering have not yet been determined.
Founded in 2024 via a spin off from Arkon Energy, Nscale went from $100 million to over $103 billion in total contracted value in just two years. Over the same period, its power pipeline grew from 750 megawatts to 10+ gigawatts. Read the company's full S-1 filing here and its press release announcing the IPO here.
What is a neocloud?
Nscale is a neocloud, aka a company focused on GPU‑heavy, AI‑first infrastructure, that offers high‑performance compute, flexible pricing and faster access to scarce accelerators outside hyperscalers.
Some leading neoclouds include CoreWeave, Crusoe, Lambda, Nebius and Together AI.