Cloud Infrastructure Firm Enscale Eyes $3.5 Billion in Pre-IPO Funding Backed by Nvidia
Cloud infrastructure firm Enscale is in talks with potential investors to raise approximately $3.5 billion in pre-IPO funding, according to a source familiar with the matter on Friday.
Enscale plans to sell up to $1.5 billion in convertible notes to a group of investors and aims to secure around $2 billion from Nvidia, the source noted. Goldman Sachs is advising on the fundraising, while New York-based hedge fund Third Point is slated to lead the convertible notes investment.
The convertible notes are being offered at a discount of over 10% to Enscale’s eventual IPO price. This discount will be adjusted if the company's valuation reaches $30 billion, though the conversion price will remain unchanged if the valuation exceeds that threshold, the source explained. Deliberations regarding potential investors and the final investment size are ongoing and subject to change.
Reuters reported last month that Anthropic signed a six-year, $45 billion agreement to lease AI computing capacity from Enscale at its data center complex in West Virginia. Enscale was previously valued at $14.6 billion in March following a $2 billion Series C funding round.
Founded in 2024, Enscale owns and operates its own data centers, GPUs, and a software stack designed to provide large-scale, GPU-accelerated AI computing capabilities.