Hedge fund Third Point is set to play a leading role in a planned $3.5bn pre-IPO fundraising by AI cloud infrastructure provider Nscale, as the company prepares for a potential public listing, according to a report by Reuters.

The report cites an unnamed person familiar with the matter as revealing that Nscale is in discussions with investors over a financing that could comprise up to $1.5bn of convertible notes, alongside a potential $2bn investment from Nvidia.

New York-based Third Point, founded by Dan Loeb, is expected to lead the convertible note investment, with Goldman Sachs advising on the fundraising.

The notes are being marketed at a double-digit discount to Nscale’s eventual IPO price, according to the source. The terms would adjust the discount up to a valuation of $30bn, after which the conversion price would remain fixed.

The size of the fundraising and the final group of investors remain under discussion and could change, the source said.

Third Point and Nvidia reportedly did not immediately respond to requests for comment, while Nscale and Goldman Sachs reportedly declined to comment.

Nscale, founded in 2024, operates data centres, GPUs and its own software platform designed to provide large-scale computing capacity for AI applications. The company was valued at $14.6 billion in March following a $2bn Series C financing.

Its prospects have been boosted by demand from major AI companies. Last month, Reuters reported that Anthropic had agreed to a six-year, $45bn deal to rent AI computing capacity from Nscale’s data centre campus in West Virginia.