Exclusive: Read the 9-page memo hyperscaler startup Nscale used to raise a $155 million Series A

Nscale, a London-based startup, has raised $155 million in Series A funding led by Sandton Capital Partners, with participation from Kestrel, Bluesky Asset Management, and Florence Capital. The company, which emerged from stealth in May 2024, offers a fully integrated AI infrastructure platform, providing access to data centers, software, and GPU infrastructure. Nscale differentiates itself from competitors by owning its data centers and offering a complete stack of technologies needed to train and run AI applications, such as large language models. This vertical integration allows Nscale to achieve better unit economics and offer faster and cheaper services.

The startup plans to use the new funding to invest in large clusters of GPUs and enhance software development for its public cloud platform, set to launch in January 2025. Since its inception, Nscale has expanded its data center capacity across Europe and the US from 300 megawatts to 1.3 gigawatts. The company generates revenue by building data centers, purchasing GPUs, and leasing AI cloud services on an hourly basis. Nscale's approach aims to create a resilient AI cloud infrastructure capable of surviving commodity cycles, positioning itself as a key player in the AI infrastructure market.

Key takeaways:

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Nscale has raised $155 million in Series A funding to expand its AI infrastructure platform.
The startup offers a fully integrated solution, including data centers, GPUs, and software, differentiating itself from competitors.
Nscale plans to invest in large GPU clusters and enhance software development for its upcoming public cloud platform.
The funding round was led by Sandton Capital Partners, with participation from Kestrel, Bluesky Asset Management, and Florence Capital.

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Exclusive: Read the 9-page memo hyperscaler startup Nscale used to raise a $155 million Series A

Key takeaways:

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