Nscale Raises $1.1 Billion in Funding

British artificial intelligence infrastructure firm Nscale has successfully raised $1.1 billion in a significant Series B funding round, as it aims to scale up the deployment of AI data centers across Europe. This announcement was made on Thursday, highlighting the growing demand for advanced computing infrastructure necessary for training and operating powerful AI models from industry giants such as OpenAI, Microsoft, and Google.

The funding round, led by the Norwegian industrial investment company Aker, saw participation from major firms including Nvidia, Nokia, and Dell. This influx of investment not only underscores the escalating need for high-powered computing capabilities but also Nscale’s pivotal role in positioning the UK as a global AI leader.

Josh Payne, Nscale’s CEO and co-founder, stated, “We are creating one of the largest global [infrastructure] platforms of its kind – purpose-built to meet surging demand and unlock breakthroughs at unprecedented scale.” The initiative is poised to enable Nscale to provide clients with access to critical compute capacity while also emphasizing energy efficiency and compliance.

Originating as a spin-off from Arkon Energy, an Australian cryptocurrency mining operation, Nscale was established in 2023 with the goal of addressing the urgent demand for data centers adept at managing AI workloads. The firm is partnered with OpenAI to develop new data centers in the UK and Norway as part of the Stargate investment project.

A substantial portion of the Series B funding will facilitate the brisk rollout of the Stargate data center initiatives throughout Europe. Notably, Nscale is dedicating $1 billion for the Norwegian project, targeting the installation of 100,000 Nvidia graphics processing units (GPUs) by 2027. Additionally, the UK facility will initially accommodate 8,000 GPUs, with plans to expand to approximately 31,000 GPUs in subsequent phases.

This significant funding milestone reflects the broader trends in the AI sector, where robust infrastructure is becoming increasingly critical to meet future capabilities.