One of Europe’s biggest AI cloud companies just raised US$3.36B, and it started life inside an Australian bitcoin miner.
The origin
Nscale began in 2024 as an offshoot of Arkon Energy, a Melbourne-based crypto miner. Cofounder Josh Payne is Australian. The company is now headquartered in London.
What it does
Nscale builds AI data centres and GPU cloud infrastructure, and pitches itself as a full-stack hyperscaler for AI labs and other heavy compute users, with sites planned or running in the UK and the US.
The raise
- US$3.36B in pre-IPO convertible notes, led by Third Point
- Nvidia, Apollo, Citadel and the Abu Dhabi Investment Council among those also in
- A separate US$1B commitment from Nvidia expected in mid-November
- The notes convert into shares when the company lists
The numbers
Nscale reports a contracted backlog of about US$103B, up from US$38B at the end of last year, though most of that is revenue not yet earned. It has filed to list on the New York Stock Exchange, with the float reported to target a valuation of up to US$35B. First half revenue was US$140.6M, with a net loss of about US$1B.
My read
Bitcoin mining is all about cheap power and building fast, which is exactly what AI needs. But the US$103B backlog is the company’s own number, and the losses are big. The float is where it gets tested.