Nscale announced plans to raise at least $3.5 billion in financing before its potential IPO later this month, combining $1.5 billion in convertible notes with about $2 billion from Nvidia, an existing investor and chip supplier [1, 2]. The company aims to raise up to $3 billion in its public offering targeted for September [3, 1, 2].
On September 3, Nscale revealed a large AI cloud computing contract with robotics startup Figure valued at a minimum of $3.5 billion, with the option to scale beyond $6 billion as demand grows [3, 4]. Figure, which raised over $1 billion last year valuing it at $39 billion, focuses on humanoid robots [3]. Nvidia CEO Jensen Huang said Nscale and Figure "have activated the robotics flywheel," signaling close collaboration among the companies [3].
Nscale plans to fulfill the Figure contract starting in the second half of 2027 at a new facility in Barstow, Texas, using Nvidia chips, including Blackwell and approximately 194,000 Vera Rubin GPUs under contract [3, 2]. Nvidia is providing both chip supply and key financing support for Nscale and Figure [3, 1, 2].
There are differing reports on Nscale’s projected revenues. Some investor briefings cited estimated total contract value of about $103 billion and annual revenue around $18.1 billion, with adjusted EBITDA roughly $13.6 billion [1, 2]. However, Nscale’s initial announcement focused only on contract values and IPO plans without specific revenue projections [3].
Anthropic, a leading AI startup with a projected annual revenue exceeding $65 billion, is also preparing for an IPO between late September and October. It recently expanded its revolving credit facility to $15 billion ahead of its public offering [5].
Nscale’s upcoming IPO and expanded financing aim to position it as a major player in AI cloud infrastructure. It operates a growing fleet of Nvidia GPUs to meet cloud computing demand [2]. The company is set to begin deploying infrastructure for the Figure contract in mid-2027, marking a concrete step in scaling its AI services [3].
