Nvidia-Backed Nscale Lands Whopping $1.1B — Smashing European Funding Records

European tech just rewrote the rulebook on venture capital.

Nscale's monumental Series B haul doesn't just break records—it vaporizes them. The Nvidia-backed infrastructure player now commands more funding than some small nations' GDP.

The New Funding Hierarchy

That $1.1 billion injection signals institutional conviction in compute infrastructure at scale. Traditional VCs scrambled to get allocation alongside strategic corporate backers—proving once again that real infrastructure plays attract real capital.

While fintech startups chase incremental revenue models, Nscale's war chest positions it to dominate the physical layer of AI and blockchain infrastructure. The funding round likely values the company higher than several publicly-traded tech firms—all without a single earnings call.

European startups haven't seen this scale of ambition since Spotify went global. But unlike consumer apps, Nscale's infrastructure-first approach builds moats that SaaS companies can only dream of.

Wall Street analysts will undoubtedly call this 'excessive' while quietly updating their pitch books to include infrastructure plays. Because nothing says 'future-proof' like controlling the pipes everyone else depends on.

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Nscale seeks to harness renewable energy to provide an infrastructure platform for AI compute capacity. The London-based company offers networking, storage, managed software, and AI services via its own and “colocated” or shared data centers.

‘Europe Needs a Hyperscale’

Nscale, in a statement, said the new investment, which it called “the largest Series B in UK and European history,” will help it speed up the launch of its “AI factory” data centers in projects such as Stargate UK and Stargate Norway. The company also stated that the new fund will be utilized to drive its expansion across Europe, North America, and the Middle East.

“We are building the AI-native Infrastructure platform of tomorrow,” said Josh Payne, CEO of Nscale. “Europe needs a Hyperscaler, and Nscale is rising to the challenge,” Payne added.

The new funding round was spearheaded by Aker ASA (AKAAF), with ongoing support from existing investors like Sandton Capital, and contributions from Blue Owl (OWL), Dell (DELL), Fidelity Management & Research Company, G Squared (GSQD), Nokia (NOK), NVIDIA, Point72, and T.Capital.

Nscale Banks on the Stargate Project

Stargate is a massive $500 billion AI data center infrastructure project backed by major U.S. tech companies such as OpenAI and Oracle (ORCL), in partnership with Japanese investment conglomerate SoftBank (SFTBF). The project, which is still in the works, is also being extended to other parts of the world, including India.

Nscale’s Series B funding is the latest in its recent investment-attraction spree, aided by the Stargate project. Nscale and Microsoft, in collaboration with Aker ASA, a Norwegian investment firm, recently signed a $6.2 billion deal to build high-performance AI infrastructure in Narvik, Norway.

The deal builds on the Stargate Norway Project, which has brought together Nscale, OpenAI, and Nvidia. The project seeks to deliver 100,000 Nvidia GPUs by the end of 2026. Furthermore, the three companies are separately collaborating to establish Stargate UK.

The goal here is to build AI data centers across a number of sites in the UK. The infrastructure will be designed to deploy OpenAI’s technology and target the development of the UK’s “sovereign workloads” — this refers to AI tasks run within the UK’s borders, under the British government’s legal, security, and data governance frameworks.

Nscale Eyes ‘UK’s Largest AI Supercomputer’

Meanwhile, Nscale also recently entered a separate arrangement with Microsoft—as part of the UK-US Technology Partnership—to build “the UK’s largest AI supercomputer” in Loughton, a suburban town NEAR London. The goal is to build 50MW of AI capacity and have the site host over 23,000 Nvidia GB300 GPUs by the first quarter of 2027.

The facility is set to play a major role in boosting Microsoft’s Azure cloud computing services throughout the UK. By the end of 2026, about 100,000 NVIDIA GPUs are expected to be delivered.

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