Nvidia will put $1 billion into Nscale, which rents out its chips.
British company Nscale, which provides computing services for AI over the internet, secured $3.36 billion in convertible notes before its planned US listing, TechCrunch reported on 25 September.
Convertible notes are loans that can turn into shares.
$2.36 billion is available now. The other $1 billion comes from Nvidia, already an investor, in mid-November. The hedge fund Third Point led the deal.
Nscale filed the week before for its planned sale of shares to the public. It expects a valuation of about $35 billion on the New York Stock Exchange and aims to raise $3 billion.
Nscale's filing with the SEC, the US financial markets regulator, lists contracts worth over $103 billion. Nscale became a separate business two years ago. Before that, it was part of an Australian company that used computers to create cryptocurrency. It is building data-centre campuses in Norway and West Virginia.
Nscale buys Nvidia chips for its online computing services for AI. So the chip maker is both its supplier and one of its lenders.
Earlier this month, AI company Anthropic ordered computing from Nscale. The order was worth $44.6 billion.
The article carries no comment from Nscale or Nvidia.
Does it matter to you if your provider of online computing services for AI is financed by its own chip supplier?
Sources
Our file on Nvidia
- 3 Oct
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- 1 Oct
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- 30 Sept
Samsung and affiliates committed $1 billion to AI infrastructure.
- 30 Sept
Nvidia cleared $150 billion to buy back shares. Apple's biggest was $110 billion.
- 29 Sept
NVIDIA launched a safety net for AI agents. Microsoft and JPMorgan already use it.
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