AI Hyperscaler Nscale Aims to Raise $2 Billion

Artificial intelligence (AI) hyperscaler Nscale reportedly aims to raise $2 billion in a funding round.

The company is talking with investors but could still decide not to proceed with a deal, Bloomberg reported Thursday (Jan. 8), citing unnamed sources.

Nscale did not immediately reply to PYMNTS’ request for comment.

The company announced in an Oct. 1 press release that it closed a $433 million pre-Series C SAFE backed by key investors such as Blue Owl Managed Funds, Dell, Nvidia and Nokia, as well as existing Series B and new investors.

Days earlier, on Sept. 25, Nscale said in a press release that it raised $1.1 billion in a Series B funding round and that this was the largest Series B in European history.

The company said it would use that funding to further its deployment of AI infrastructure across Europe, North America and the Middle East; accelerate the expansion of its engineering and operations teams; and strengthen delivery for enterprise and government customers around the world.

Nscale CEO and Founder Josh Payne said in the Oct. 1 press release: “This commitment to participating in our pre-Series C SAFE, just days after the close of our Series B funding, represents a powerful endorsement of our vision to deliver sovereign, scalable infrastructure for the AI era.”

Oyvind Eriksen, president and CEO of Aker ASA, which led Nscale’s Series B round, said in the Sept. 25 release: “AI is reshaping the global economy and redefining the value of renewable energy. With Nscale, we’re backing infrastructure that’s sovereign, scalable and purpose-built to accelerate this transformation. Nscale’s full-stack, GPU-first model gives it a real edge in execution.”

It was reported in May that hyperscalers, or large cloud computing companies, make up more than half of the data center revenue of chipmaker Nvidia.

PYMNTS reported in March that the largest hyperscalers operate data centers that span thousands to over 1 million feet and house thousands of servers that store data and run applications on behalf of their customers.

In September, AI hyperscaler CoreWeave announced a multibillion-dollar agreement with Meta days after reporting a deal with OpenAI.