AI infrastructure firm NexGen Cloud closes £79.4m led by USD.AI
This article covers NexGen Cloud, an AI startup, which has secured a £79.4m senior secured four-year term loan facility led and arranged by USD.AI. The facility will finance deployment of 216 NVIDIA HGX B300 servers (1,728 GPUs) to expand NexGen Cloud's full-stack cloud environments for large-scale AI workloads across Europe and extends USD.AI's GPU-backed financing footprint for the startup to £104.9m.
USD.AI has led and closed a £79.4m debt funding round in the form of a senior secured four-year term loan facility for NexGen Cloud, an AI startup that provides full-stack cloud environments for large-scale AI workloads across Europe. The deal finances 216 NVIDIA HGX B300 servers (1,728 GPUs) and expands USD.AI’s GPU-backed financing footprint for NexGen Cloud to £104.9m across two facilities, signalling growing institutional interest in non-hyperscaler AI infrastructure.
Why it matters
This transaction highlights a maturing market for GPU-backed lending aimed at the Compute Middle Market — GPU operators and AI infrastructure businesses below the hyperscaler tier. By structuring secured loans tied to deployed hardware and contracted cashflows, lenders can gain exposure to income-producing compute while borrowers get predictable capital to convert customer demand into capacity. The deal also shows institutional credit players moving into a niche previously served mainly by specialist financiers or vendor credit lines.
Inside the product
The loan will fund deployment of 216 NVIDIA HGX B300 servers (1,728 GPUs) at a Tier III data centre in Finland, with an escrow funding date aligned to server shipment expected in Q4 2026. The capacity is fully contracted under a take-or-pay agreement with a leading AI inference platform, and the loan amortises over the same four-year term. NexGen Cloud offers both single-tenant private cloud stacks and GPU-as-a-service through its Hyperstack products and operates as an NVIDIA Cloud Partner, hosting managed infrastructure across Europe and North America.
Who are the investors?
USD.AI led and arranged the facility and acted as administrative agent via its GPU Loan Exchange (GLX), a marketplace designed to connect standardised, serviced GPU-backed loans with institutional capital. Silver Point Capital and Victory Park Capital participated as lenders alongside USD.AI.
This is NexGen Cloud’s second financing from USD.AI, following a £25.5m facility announced in June 2026 for a NVIDIA B200 deployment in Sweden. Together the two facilities total £104.9m for NexGen Cloud across two countries. USD.AI says it has originated more than £374.6m of GPU financing this year, and that more than £149.8m of that volume has passed through GLX. GLX itself launched on October 1, 2026 with a £73.4m season-and-sell transaction for Duos Edge AI.
In the announcement, Conor Moore, Chief Operating Officer and Co-Founder of USD.AI, said:
NexGen Cloud came back to us for a facility three times the size of the first, and this time we led it alongside two established credit investors. That is what GLX is for: bringing institutional capital into the largely underserved Compute Middle Market, and putting it behind established, fast-growing neoclouds like NexGen Cloud.
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Founder perspective
NexGen Cloud frames the loan as operationally important: it gives the company the speed and certainty to turn contracted demand into deployed capacity across Europe. The financing model — hardware-backed, contracted cashflows and an aligned amortisation schedule — is presented as a way to scale capacity predictably without diluting equity.
In the announcement, Chris Starkey, Chief Executive Officer of NexGen Cloud, said:
The compute needs of our customers are growing significantly and at a rapid pace. Having access to reliable financing solutions to facilitate that demand is essential to our success. Sourcing capital through USD.AI's GLX gives us the speed and certainty to convert customer demand into deployed AI capacity across Europe. The USD.AI team's approach to many of the finance challenges we sometimes face is what separates them from others. We look forward to continuing our business growth together.
The bigger picture
The deal is another indicator that institutional credit markets are finding ways to underwrite AI infrastructure outside hyperscalers, using asset-backed structures and take-or-pay commercial contracts to mitigate revenue risk. For European AI infrastructure, this creates an alternative capital route to vendor financing or equity, potentially accelerating deployments in regions where sovereign and data-residency considerations matter.
As European demand for inference and training capacity grows, transactions like this will be watched for pricing, covenant structures and how lenders assess obsolescence risk for GPU hardware. The participation of established credit investors alongside specialist arrangers suggests a gradual broadening of the investor base for GPU-backed finance, which could help more startups scale capital-intensive infrastructure across the region.
They've invested in NexGen Cloud
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