Nscale targets $35bn valuation in US IPO despite $1bn loss

Key points

• Nscale filed to list on the NYSE under the ticker NSCL, aiming for a valuation of up to $35 billion.
• The company reported a net loss of $1.02 billion on $140.6 million in revenue for the six months ended June 30, 2026.
• Revenue grew 1,252% year-over-year, driven by a $45 billion contract with Anthropic for West Virginia data center capacity.
• Nvidia is a key investor and customer, having invested over $2 billion and guaranteeing $860 million in lease obligations for a Texas facility.
• The company holds 25,000 active GPUs and has line of sight to 10 gigawatts of computing power, with over $8 billion in debt.
• Board members include former Meta executive Sheryl Sandberg, former UK deputy prime minister Nick Clegg, and former OpenAI executive Fidji Simo.

Background

Nscale emerged from stealth in 2024 after spinning out of Australian bitcoin mining firm Arkon Energy. It has rapidly become one of Europe’s best-funded data center providers, raising $3.7 billion in equity and over $5 billion in debt. The company’s expansion coincides with a broader surge in AI infrastructure demand, though recent industry calls for a slowdown in AI development have sparked volatility in related stocks.

How outlets are covering it

CNBC emphasizes Nscale’s rapid revenue growth and its diversification into inference services, noting the acquisition of startup Anyscale. The Financial Times highlights the company’s massive $45 billion contract with Anthropic and the potential risks posed by industry calls for an AI slowdown, which recently triggered a sell-off in AI infrastructure stocks. Yahoo Finance focuses on the impact of the IPO on Nvidia’s stock, given the chipmaker’s deep financial and operational ties to Nscale. All sources agree on the scale of Nscale’s debt and its reliance on major tech partners, but differ in emphasis: CNBC focuses on operational metrics, the FT on market risks, and Yahoo on investor sentiment.

Why it matters

Nscale’s IPO signals continued investor appetite for AI infrastructure despite high losses and mounting debt. Its success or failure could indicate whether the AI boom is sustainable or if a slowdown is imminent, affecting major players like Nvidia, Anthropic, and Microsoft.

What to watch

Nscale will proceed with its IPO, potentially listing on the NYSE. The company plans to bring its West Virginia data center online late next year. Investors will watch for signs of an AI slowdown, which could impact Nscale’s stock and its major partners.