Former Miner Raises Billions as Nscale Prepares for an IPO
Nscale founder Josh Payne and NVIDIA CEO Jensen Huang at NVIDIA GTC. Source: Nscale’s official account on X.
At 17, Josh Payne left school and took a job at a coal mine in Australia. Today, his London-based company Nscale builds AI computing infrastructure, attracts investment from NVIDIA and is preparing for a U.S. IPO. Its growth draws on experience in energy, multiyear orders from technology giants and the need to finance construction well before customers start paying.
On September 18, 2026, Nscale filed for an initial public offering. Over the following month, it announced $3.36 billion in new financing and faced a setback involving one of its Microsoft projects. We look at how Payne built the business and the financial results it is presenting to investors.
Coal Mining and Early Ventures
Payne spent around three years working underground. According to his account in DUKE magazine, he read business books in his spare time and experimented with ventures of his own. He first learned to build websites and sold sports supplements, then moved into recruiting workers for construction companies.
That experience introduced him to infrastructure projects, which require people, equipment and reliable power. Payne later founded Arkon Energy and entered the cryptocurrency mining industry. The company sought sites with low electricity costs, including in Norway, where hydropower plays a major role.
A Shift to AI Computing
The launch of ChatGPT drove a sharp increase in demand for computing capacity among AI developers. Training models and processing queries required large clusters of graphics processing units. Deploying them meant finding sites, securing electricity, installing cooling systems and operating the hardware.
Payne had already dealt with similar infrastructure challenges at Arkon. He began developing the new business within the company, and Nscale became an independent business in 2024. He moved to London and focused on serving AI companies.
Nscale combines data centers, GPU servers and cloud software. Customers rent computing capacity to train and run models. This lets them expand without building their own facilities, while giving Nscale long-term demand for its infrastructure.
One of its earliest sites was Glomfjord in northern Norway. According to Nscale, the data center runs on local hydropower and has 30 MW of capacity, expandable to 60 MW. The location directly affects the economics of the business: affordable power and a cool climate help support energy-intensive hardware.
Billions to Fund Construction
To expand, Nscale needed investors willing to finance construction and equipment purchases. In December 2024, it announced a $155 million Series A. It raised another $1.1 billion in September 2025, followed by $2 billion at a $14.6 billion valuation in March 2026.
Norwegian industrial group Aker and 8090 Industries led the March round. NVIDIA, Dell, Nokia and other investors also participated. Relationships with technology companies are particularly important to Nscale: expansion requires access to advanced accelerators, servers and networking equipment.
In September 2026, Nscale announced a further $3.36 billion in convertible debt financing. The initial tranche totaled $2.36 billion. NVIDIA committed another $1 billion, expected to be funded in mid-November. The instruments are set to convert automatically into shares upon the IPO.
This gives Nscale access to capital before the final offering terms are set. The $14.6 billion valuation in March relates to a private funding round; the IPO share price will be determined separately.
NVIDIA Backs Payne
The partnership with NVIDIA also brought Payne a symbolic gift. During a meeting, Jensen Huang presented him with a signed bottle of Johnnie Walker Blue Label. Nscale shared the moment on social media. The unusual souvenir became a detail in the story of how a little-known entrepreneur secured the backing of the leading AI chip supplier.
NVIDIA supplies the technology for computing infrastructure and helps finance Nscale’s expansion. This supports Nscale’s capacity growth while creating new customers for NVIDIA’s hardware.
Strengthening the Board
In March 2026, Nscale strengthened its board of directors. Sheryl Sandberg, Nick Clegg and former Yahoo president Susan Decker joined the company.
For a young business signing major deals and preparing to go public, they bring experience running global technology companies. Payne leads Nscale’s development, while the new directors are familiar with scaling businesses, working with shareholders and engaging with public institutions.
Microsoft and Anthropic Contracts
In its IPO filing, Nscale disclosed agreements with Microsoft worth up to $43.8 billion through the end of 2033 and with Anthropic worth up to $44.6 billion. Payments depend on delivering the agreed computing capacity and meeting contractual terms.
As of August 31, 2026, the total value of active and contracted agreements stood at $103.4 billion. These orders will generate revenue as equipment comes online and services are delivered. Construction schedules, power connections and server readiness therefore determine when the company starts receiving payments.
Revenue Grows, Losses Persist
In the first half of 2026, Nscale generated $140.6 million in revenue, up from $10.4 million a year earlier. Its net loss reached $1.02 billion, compared with $368.9 million. A substantial portion of the loss reflected fair value adjustments to financial instruments.
The company is undergoing a major expansion. Its investment case rests on new facilities coming online to fulfill contracts already signed. Returns in this business depend on the time between infrastructure investment and customer payments, as well as the cost of capital.
Microsoft Exits Loughton Deal
On October 18, Reuters, citing The Telegraph, reported that Microsoft had withdrawn from an agreement for Nscale’s data center in Loughton, Essex. The newspaper reported project delays and difficulties connecting to the electricity grid: according to its reporting, power might not be available until the 2030s. The reason for terminating the agreement has not been officially disclosed.
Nscale told Reuters that its other Microsoft contracts remained in place. The company remains committed to the Loughton site and is exploring alternative power sources, alongside other expansion opportunities in the UK. Microsoft declined to comment to the news agency.
The Loughton case illustrates why access to power remains a key condition for expanding AI infrastructure. Securing a major customer is only part of the process: a facility must obtain electricity and start operating on schedule.
IPO Valuation Under Discussion
Nscale has chosen the New York Stock Exchange for its planned listing under the ticker NSCL. As of October 19, the final offering price, number of shares and trading debut date have not been announced. Goldman Sachs, J.P. Morgan and Morgan Stanley are working on the deal.
On October 18, Bloomberg, citing people familiar with the matter, reported that Nscale had been targeting a valuation of around $30 billion. Some investors are proposing a range of $16 billion to $19 billion, according to the report. Nscale has yet to announce the final offering terms.
Payne built a business around rapidly growing demand for computing capacity. Investors now need to assess how successfully Nscale can deliver on its multiyear orders: bringing facilities online, securing power and turning its contract portfolio into sustainable cash flow.
Participating Through Regolith
Regolith accepts preliminary applications to participate in Nscale’s IPO, starting at $100. If the offering takes place and an allocation is secured, shares will be purchased at the actual IPO price within the allocated amount. Full terms are available on the offering page.
