Nscale, the Nvidia-backed AI cloud provider that has filed to list on the NYSE, raised $2.36B in convertible notes led by Third Point. $NVDA separately committed another $1B, bringing the total financing to $3.36B. Funding is expected in mid-November.

NSCALE RAISES $3.36B AHEAD OF NYSE IPO Nvidia-backed AI cloud provider Nscale raised $3.36B through convertible notes led by Third Point. The round includes $2.36B at closing plus a separate $1B commitment from Nvidia, expected to fund in mid-November. The notes will automatically convert into equity when Nscale completes its IPO, with Nvidia receiving non-voting shares. Nscale says it now has more than $103B in total contracted value across its AI infrastructure platform, which spans power, liquid-cooled data centers and large-scale GPU clusters.

Nscale, the Nvidia-backed AI cloud provider, buried a significant relationship with ByteDance in its pitch to investors, only mentioning the Chinese tech giant in an obscure filing despite its accounting for nearly three-quarters of its sales last year. Beijing-based ByteDance was one of the first major customers for Nscale’s nascent cloud-computing business, renting access to advanced Nvidia AI chips in Norway... But their relationship was indicated only in a document published on Friday alongside Nscale’s main filing for a US initial public offering that did not directly mention ByteDance by name. - FT

Nscale’s S-1 highlights one of the biggest problems in compute. Most of their $103.4B pipeline is wrapped up as future deployments. This means that value won’t accrue in the application layer for another decade. > 461,000 GPUs active or contracted > about 25,000 active today > Weighted-average contract: 5.7 years.

Nscale, a developer of artificial intelligence data centers that counts Nvidia and Microsoft among its partners, filed for an initial public offering in New York to tap into AI’s insatiable demand for computing power