Nscale Closes Record $2B Series C
UK-based AI infrastructure hyperscaler Nscale has closed a $2 billion Series C at a $14.6 billion valuation — the largest Series C in European history. The company, focused on accelerating global AI infrastructure, also added heavyweights like Sheryl Sandberg and Nick Clegg to its board, signaling massive strategic ambition amid surging demand for GPU compute.
The Series C funding was led by Norwegian industrial group Aker ASA and New York-based venture firm 8090 Industries, with significant participation from tech giants NVIDIA, Dell, and Lenovo, as well as financial firms Citadel, Jane Street, and Point72. This strategic mix of industrial, tech, and financial investors signals deep confidence in Nscale's vertically integrated approach to AI infrastructure. The addition of Sheryl Sandberg and Nick Clegg to the board is a strategic move to prepare for massive scaling and public market entry. Sandberg brings operational experience from scaling Meta, while Clegg, Meta's former President of Global Affairs and a former UK Deputy Prime Minister, provides crucial expertise in navigating the complex global policy and regulatory landscape surrounding AI. Former Yahoo president Susan Decker also joins the board. This $2 billion funding is part of a larger capital influx, including a $1.1 billion Series B in September 2025 and a $1.4 billion debt facility secured earlier this year to purchase GPUs. The involvement of Goldman Sachs and JPMorgan in leading the financing is widely seen as preparation for a potential IPO, a move CEO Josh Payne suggested could happen soon to raise even more capital. Founded in 2023 and spun out of Australian bitcoin mining infrastructure provider Arkon Energy in 2024, Nscale has seen a meteoric rise. The company's business model focuses on the entire AI infrastructure stack, from designing and operating its own data centers to providing GPU compute, networking, and orchestration software. Nscale is developing a global network of AI data centers, with a focus on sustainable energy. Key projects include a 230MW "Stargate Norway" AI gigafactory in partnership with OpenAI, powered entirely by renewable hydropower, and plans to invest $2.5 billion in new UK data center sites. The company has forged critical partnerships with industry leaders, including Microsoft and OpenAI, to provide large-scale AI compute capacity. Nscale is set to build the UK's largest AI supercomputer, which will initially house over 23,000 NVIDIA GPUs to support Microsoft Azure and other enterprise AI workloads. The massive funding round addresses a critical market bottleneck: the surging demand for GPU compute power is outstripping supply. The global GPU market was estimated at over $50 billion in 2024 and is projected to more than double by 2031, driven almost entirely by AI and machine learning needs. This deal establishes Nscale as a European "decacorn" (a private company valued over $10 billion), demonstrating the continent's ability to fund capital-intensive hardware and infrastructure giants. The investment strengthens Europe's strategic role in the global AI supply chain, moving beyond software to the fundamental compute layer.
