Nscale seeks about $3.5 billion pre-IPO funding, source says

Nscale, a cloud infrastructure provider, is seeking approximately $3.5 billion in pre-IPO funding, according to a source familiar with the matter. The company plans to raise the funds through a combination of convertible notes and investment from Nvidia, with Goldman Sachs handling the fundraising process. Third Point, a New York-based hedge fund, is expected to lead the investment in the convertible notes, which are being offered at a significant discount to Nscale's planned IPO price.

The discount could be adjusted up to a $30 billion valuation, with the conversion price remaining unchanged beyond that point. Third Point and Nvidia have not yet commented on the matter, while Nscale and Goldman Sachs declined to provide any statement. The potential investors and the size of the investment are still under discussion and may be subject to change. Bloomberg News first reported the story on Friday.