AI cloud infrastructure firm Nscale is seeking $3.5 billion in pre-IPO financing as it prepares for a public listing. Bloomberg reports that the company also aims to secure about $2 billion of this capital specifically from NVIDIA.

The combined financing effort signals Nscale's strategic positioning in the AI cloud sector while securing substantial capital ahead of its market debut. The reported NVIDIA involvement highlights the critical role of chip partnerships in funding large-scale AI infrastructure projects.

Deal Structure

The proposed transaction involves a significant capital injection prior to the initial public offering. Key aspects of the financing include:

• Total Amount: $3.5 billion
• Stage: Pre-IPO
• Sector: AI Cloud
• Key Investor Target: NVIDIA ($2 billion)

This large-scale raise underscores the capital intensity of the AI cloud infrastructure sector. The specific aim to secure $2 billion from NVIDIA suggests a deepened commercial or financial tie with the chipmaker, though no further details regarding valuation or specific investor participation were disclosed in the report.

Nscale has closed approximately $3 billion in aggregate commitments across two senior secured delayed draw term loan facilities (DDTLs) to fund its artificial intelligence infrastructure expansions in the United States.

The financing supports the company's Ward County, Texas campus and its Madison County, North Carolina site. Both facilities have received investment-grade ratings with stable outlooks, providing up to $1.85 billion for the Texas location and up to $1.2 billion for the North Carolina site.

Facility Details

The funds will primarily finance the deployment of GPU infrastructure, networking, storage, and liquid-cooling equipment. J.P. Morgan and Goldman Sachs served as joint lead arrangers, joint bookrunners, and co-structuring agents for both transactions.

J.P. Morgan acted as lead left arranger for the Ward County facility, while Goldman Sachs held that role for the North Carolina facility.

Ward County, Texas

The Texas campus is a purpose-built AI infrastructure site designed for high-density, next-generation compute deployments. It utilizes closed-loop direct liquid cooling and rear-door heat exchangers to support advanced AI systems efficiently at scale.

The loan facility, issued through Nscale Ward County Borrower SPV, LLC, will fund NVIDIA GB300 (Blackwell Ultra) and VR200 (Vera Rubin) systems capable of supporting approximately 275 MW of IT load.

Madison County, North Carolina

The North Carolina site is a 96-acre colocation facility with up to 40 MW of capacity. The associated loan facility will fund site retrofit capital expenditures, GPU infrastructure, and networking required for high-performance AI compute deployments.

What the Numbers Show

The split in financing reflects the differing scale and stage of the two projects. The larger $1.85 billion commitment for Ward County aligns with its significantly higher power capacity (~275 MW vs 40 MW), indicating a focus on greenfield, high-density compute builds. The smaller $1.2 billion allocation for Madison County supports retrofitting an existing colocation site, suggesting a lower capital intensity per megawatt compared to the new build in Texas.