Latest news with #JoshPayne
Bloomberg
05-05-2025
- Politics
- Bloomberg
Senior Royals Join Thousands in London as VE Day Commemorations Begin
By THE PRESS ASSOCIATION (Josh Payne, PA Chief Reporter) Save Senior royals have joined thousands of people in London to observe a military procession to begin commemorations marking the end of the Second World War in Europe. Nato allies joined 1,300 members of the UK armed forces for the parade, with the words of Sir Winston Churchill's 1945 victory speech spoken by actor Timothy Spall kicking off events for the 80th anniversary of Victory in Europe Day.
Yahoo
28-04-2025
- Business
- Yahoo
Startup Nscale Aims for $2.7 Billion AI Play -- Backed by Nvidia Chips and a ByteDance Mega Deal
Nscale, a London-based startup founded just 11 months ago, is moving aggressively to capitalize on the AI boom. The company is seeking to raise about $2.7 billion to build global data centers powered by Nvidia (NASDAQ:NVDA) chips, according to offering documents seen by Bloomberg. The proposed financing package includes a $1.8 billion private credit deal led by Goldman Sachs and another $900 million in preferred equity and convertible shares. Nscale's management is betting that surging AI infrastructure demand will support rapid growth, even as recent market volatility tied to Trump's new tariff measures poses fresh headwinds. Discussions with investors began before the latest financial shocks, and plans may evolve depending on market conditions. Warning! GuruFocus has detected 3 Warning Signs with NVDA. A key part of Nscale's strategy hinges on an expected $2 billion contract with ByteDance, the Chinese owner of TikTok, which would rent high-end Nvidia GB200 chips installed at Nscale facilities in Norway. ByteDance has acknowledged discussions but indicated the size of the deal may be overstated. Nevertheless, the arrangement highlights a growing trend where Chinese tech companies bypass U.S. chip restrictions by leasing compute power abroad. To strengthen its case with lenders, Nscale is offering collateralized loans backed by Nvidia chips, data center leases, and customer contracts, aiming for a spread even tighter than recent private deals in the AI space. Pricing remains in flux, but the structure could offer investors a compelling risk-reward profile if demand holds up. Still, concerns are building about whether the AI infrastructure rush can sustain its current pace. Nscale's nearest rival, Coreweave, recently scaled back its IPO plans after investor enthusiasm cooled, and Nscale's current operational capacity about 40 megawatts across Norway and Texas remains much smaller than Coreweave's 360 megawatts. Nscale, founded by energy entrepreneur Josh Payne and backed by Sandton Capital Partners following a $155 million Series A, is now racing against time. With five new sites in the pipeline and mounting scrutiny on AI spending, the company's ability to execute swiftly and lock in anchor customers like ByteDance will be critical to determining whether it becomes a major new player or just another ambitious AI story that burned bright and faded fast. This article first appeared on GuruFocus.
