Nvidia commits $1 billion to AI-cloud firm Nscale

Nvidia is committing $1 billion toward a $3.1 billion convertible financing round for AI infrastructure provider Nscale. The investment gives Nvidia direct capital exposure alongside its core business of supplying chips for AI data centers.

Nscale filed for a U.S. initial public offering on September 18, 2026. The company reported a net loss of $1.02 billion on revenue of $140.6 million for the first six months of 2026 as it builds out costly computing infrastructure.

Microsoft is also expected to become one of Nscale's major customers to secure external AI capacity while data center availability remains tight. The IPO tests how infrastructure operators balance heavy borrowing and depreciation costs against expanding AI compute demand.