Nvidia to invest £500 million in AI infrastructure firm Nscale, a spin-off of a crypto mining firm

PANews reported on September 18th that Nvidia CEO Jensen Huang revealed that Nvidia will invest £500 million (approximately $683 million) in Nscale, stating that Nscale will be part of an AI infrastructure initiative valued at up to £11 billion. Nscale is a UK data center company spun out from Arkon Energy, a crypto mining company, just 16 months ago. Nscale is one of a new generation of "neo-cloud" companies that operate and lease capacity in data centers designed specifically for AI and other data-intensive workloads, and has established partnerships with companies such as Microsoft and OpenAI.

Nscale has revealed little about its funding plans. Last December, the company announced a $155 million funding round led by New York private equity firm Sandton Capital Partners. A month later, the startup announced a £2 billion investment in computing facilities in the UK. The company said it is collaborating with Open Innovation AI, a company based in the United Arab Emirates, but did not disclose the specific funding method.