Nvidia backs AI data center startup Nscale as it hits $14.6B valuation
cnbc.com
March 9, 2026
2 min read
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Summary
Nscale has raised $2 billion, achieving a valuation of $14.6 billion, amid the ongoing AI infrastructure boom. The Series C funding round included participation from Nvidia, Aker ASA, and 8090 Industries, among others, and Nscale appointed three new directors to its board, including Sheryl Sandberg.
Key Takeaways
- Nscale has raised $2 billion at a $14.6 billion valuation, marking significant growth in the AI infrastructure sector.
- The company has secured partnerships with major tech firms, including a $14 billion deal with Microsoft and a collaboration with OpenAI for an AI data center in Norway.
- Nscale plans to accelerate the development of vertically integrated AI infrastructure across Europe, North America, and Asia.
- The startup is considering an initial public offering (IPO) as it continues to expand its operations and funding.
Community Sentiment
Concerns
- Building AI data centers in the UK raises concerns about high costs and energy scarcity, questioning the economic viability of such projects.
- The financial backing of startups like Nscale may be more about financial engineering than actual operational feasibility, which could indicate instability.
- There are doubts about Nscale's ability to deliver on its promises, with comparisons to failed startups like Theranos highlighting potential risks.
- Nvidia's support for Nscale could create an uneven competitive landscape, favoring them over alternative GPU vendors and raising questions about market fairness.
- Resistance against data centers in ideal locations, coupled with rising energy prices, suggests significant challenges ahead for new constructions.
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