London-based AI infrastructure firm Nscale is aiming for a $3.5 billion pre-IPO funding round, including a $2 billion request from Nvidia. The company reports a massive contracted revenue backlog, though investors should note it is not currently a publicly traded stock and faces execution risks as it scales operations.
Nscale, a London-based firm that provides infrastructure for artificial intelligence, is working to raise $3.5 billion in new funding. This move is a significant step as the company prepares for a potential entry into the public stock markets, which reports suggest could happen as early as September 2026. The fundraising plan is divided into two main parts: $1.5 billion in convertible notes and a $2 billion strategic investment request directed at chipmaker Nvidia.
The company has recently gained attention for reporting a total contracted revenue backlog of approximately $103 billion. A major part of this figure, about $45 billion, comes from a significant compute agreement with AI developer Anthropic. However, investors should carefully distinguish between this backlog and actual realized income. The $103 billion is a future projection based on long-term client commitments rather than cash currently in the bank. In comparison, Nscale reported revenue of over $100 million for the second quarter of 2026. While this is a sharp increase from the $37 million reported in the first quarter of the same year, the gap between the total backlog and quarterly revenue shows that the company is still in an early-stage, high-growth phase.
Building out AI infrastructure is a complex, capital-intensive business that relies heavily on physical execution. Nscale’s ability to turn its long-term contracts into steady revenue depends on successful data center construction, the timely availability of high-end hardware, and meeting rigorous operational milestones. Any delays in setting up these facilities or securing equipment could impact the company’s performance. Furthermore, the company has a high concentration of business with a few major clients like Anthropic. If these clients reduce their demand or change their strategy, it could create pressure on Nscale’s future earnings.
As Nscale moves toward an IPO, it will transition from a private company to the higher scrutiny of public markets. This requires a greater level of financial transparency and consistent reporting. For Indian investors tracking global AI trends, it is important to note that Nscale is not currently listed on any stock exchange. While the company is attracting interest from major players like Nvidia, the journey from a rapidly growing private startup to a public entity involves significant uncertainty. The market will closely watch whether the company can successfully execute its planned data center build-outs and convert its large backlog into sustained financial growth in the coming quarters.