AI hyperscaler Nscale is seeking to raise $2 billion in funding to accelerate infrastructure expansion and GPU-driven capacity build.

AI hyperscaler Nscale reportedly aims to raise $2 billion in a funding round, according to Bloomberg reporting on Thursday, January 8. The company is currently in talks with investors regarding the potential deal, though Bloomberg cited unnamed sources noting that Nscale could still decide not to proceed. Nscale did not immediately respond to PYMNTS' request for comment on the matter.

The company has demonstrated significant momentum in its recent fundraising efforts. On September 25, Nscale announced that it had raised $1.1 billion in a Series B funding round, which the company described as the largest Series B in European history. This was followed just days later by the October 1 announcement that Nscale had closed a $433 million pre-Series C SAFE backed by investors including Blue Owl Managed Funds, Dell, Nvidia, Nokia, alongside existing Series B investors and new backers.

According to Nscale's September 25 announcement, the Series B funding would be deployed to further the company's deployment of AI infrastructure across Europe, North America and the Middle East; accelerate the expansion of its engineering and operations teams; and strengthen delivery for enterprise and government customers around the world. Nscale CEO and Founder Josh Payne remarked in the October 1 press release: "This commitment to participating in our pre-Series C SAFE, just days after the close of our Series B funding, represents a powerful endorsement of our vision to deliver sovereign, scalable infrastructure for the AI era." Oyvind Eriksen, president and CEO of Aker ASA, which led Nscale's Series B round, stated in the September 25 release: "AI is reshaping the global economy and redefining the value of renewable energy. With Nscale, we're backing infrastructure that's sovereign, scalable and purpose-built to accelerate this transformation. Nscale's full-stack, GPU-first model gives it a real edge in execution."

Nscale's growth comes amid broader industry trends in the AI infrastructure space. Hyperscalers, or large cloud computing companies, make up more than half of chipmaker Nvidia's data center revenue, according to reporting from May. The largest hyperscalers operate data centers that span thousands to over 1 million feet and house thousands of servers that store data and run applications on behalf of their customers, as PYMNTS reported in March. In September, competitor CoreWeave announced a multibillion-dollar agreement with Meta days after reporting a deal with OpenAI, underscoring the significant capital flowing into AI infrastructure companies.