AI data center firm Nscale is looking to raise $3.5 billion in pre-IPO financing.

According to a report from Bloomberg, citing people familiar with the matter, the company is looking to sell up to $1.5bn in convertible notes to a group of investors and is aiming to secure the other $2bn from Nvidia.

The notes are being offered at an equivalent of the IPO price minus a double-digit percentage discount, according to sources. Third Point is said to be leading the convertible investment, while Goldman Sachs is working on the fundraising.

This comes shortly after reports emerged that Nscale was targeting an initial public offering as soon as this month, which will target a $3bn raise.

Reports that Nscale was looking at going public have been mounting since October 2025, with the company hiring the banks in February 2026 for the effort. That same month saw Nscale signing a $1.4bn delayed draw term loan backed by its GPUs.

The following month, Nscale raised $2bn in a Series C funding round that valued the company at $14.6bn, and has since gone on to close a $900m revolving credit facility and secure $790m for its Norway data center project.

The company has totted up some $103bn in contracts, according to a report from The Information, having secured major compute agreements with the likes of Anthropic and Microsoft.

The contracts run an average of 5.7 years in duration; thus, contracted revenue amounts to an annual average of around $18bn.

Conversations regarding the pre-IPO raise remain ongoing and are subject to change.