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Third Point expected to lead Nscale’s up to $1.5bn convertible funding
The planned pre-IPO package could include as much as $1.5bn in convertible notes at a double digit discount, alongside a potential $2bn Nvidia investment.
Hedge fund Third Point is expected to take a leading role in a planned pre-IPO fundraising by AI cloud infrastructure provider Nscale, Reuters reported.
The financing discussions involve convertible notes that could total up to $1.5bn, along with a possible $2bn investment from Nvidia. The notes are being marketed at a double digit discount to Nscale’s eventual IPO price, with discount terms set to adjust up to a valuation of $30bn, after which the conversion price would remain fixed.
New York based Third Point, founded by Dan Loeb, is expected to lead the convertible note investment, with Goldman Sachs advising on the fundraising. Reuters said the overall fundraising size and the final investor group remain under discussion and could change.
Nscale, founded in 2024, runs data centers, GPUs and a software platform for large scale AI computing. Its valuation was $14.6 billion in March after a $2bn Series C round, and its prospects have been supported by demand from major AI companies, including an earlier Reuters report that Anthropic agreed to a six year, $45bn deal to rent AI computing capacity from Nscale’s West Virginia campus.