Nvidia backs AI data center startup Nscale as it hits .6 billion valuation

In a significant development in the tech industry, UK-based startup Nscale has successfully raised $2 billion, achieving a remarkable valuation of $14.6 billion. This funding round, which is part of the ongoing AI infrastructure boom, was prominently supported by chip giant Nvidia, alongside other notable investors.

Overview of Nscale

Nscale was founded in 2024 and has quickly established itself as a key player in the burgeoning AI infrastructure sector. The company specializes in building data centers and providing cloud access to computing resources, essential for the development and deployment of AI technologies.

Funding Details

The recent Series C funding round was led by Aker ASA and 8090 Industries, with participation from several high-profile investors including Astra Capital Management, Citadel, Dell, Jane Street, Lenovo, Linden Advisors, Nokia, and Point72. This influx of capital is expected to accelerate Nscale’s development of vertically integrated AI infrastructure, which encompasses GPU compute, networking, data services, and orchestration software across Europe, North America, and Asia.

Recent Developments

Nscale has seen a surge in funding over the past year, reflecting the increasing interest from investors in the AI sector. Prior to this Series C round, the company announced a $1.4 billion delayed draw term loan in February and a $1.1 billion Series B in September. Although the valuation from the Series B round was not disclosed, it has been reported that the latest valuation is more than double that of the previous round.

Strategic Partnerships

Nscale has formed strategic partnerships with several major technology companies. Notably, it secured an expanded partnership with Microsoft in October, which is projected to net the company $14 billion. Additionally, Nscale collaborated with OpenAI to launch a Stargate-branded AI data center in Norway over the summer.

Leadership and Governance

In conjunction with the funding announcement, Nscale revealed the appointment of three new directors to its board. These include:

• Sheryl Sandberg: Former COO of Meta
• Nick Clegg: Former UK Deputy Prime Minister and Meta executive
• Susan Decker: Former President of Yahoo

The addition of these experienced leaders is expected to provide valuable insights and guidance as Nscale continues to expand its operations.

Market Context

The AI boom is described by industry leaders as leading to the largest infrastructure buildout in human history. Josh Payne, CEO and founder of Nscale, stated, “We are building this foundation that the market sits on, the engine of superintelligence.” This sentiment echoes the views of Jensen Huang, CEO of Nvidia, highlighting the critical role that companies like Nscale play in the future of AI technology.

Future Plans

Nscale has confirmed that it is eyeing an initial public offering (IPO) in the near future. The company currently operates data centers in various locations, including the U.K., the U.S., Norway, Portugal, and Iceland. As it continues to grow, Nscale aims to solidify its position as a leader in AI infrastructure.

Conclusion

The backing from Nvidia and other prominent investors underscores the confidence in Nscale’s potential to drive innovation in AI infrastructure. As the demand for AI capabilities continues to rise, Nscale is well-positioned to play a pivotal role in shaping the future of technology.

Frequently Asked Questions

Note: The information provided in this article is based on the latest available data as of March 2026 and is subject to change as the situation evolves.