AI startup Nscale, barely a year old, is seeking to raise $2.7 billion in debt and equity. This ambitious move is fuelled by a potential partnership with ByteDance, the parent company of TikTok. According to an offering document seen by Bloomberg, Nscale intends to use the funds to construct a robust AI infrastructure. The company is reportedly pursuing $1.8 billion in debt financing as part of this capital raise.
Nscale's rapid pursuit of substantial funding highlights the intense competition in the AI infrastructure space. Securing a partnership with ByteDance, a major player in the social media and AI landscape, would provide Nscale with a significant boost. The success of this funding round and the ByteDance partnership will be crucial in determining Nscale's ability to compete with established players like CoreWeave and Lambda in the rapidly evolving AI infrastructure market.