Nscale targets $35bn NYSE debut despite $1bn loss and AI slowdown fears

Key points

• Nscale filed for a US IPO targeting a valuation of up to $35 billion, listing on the NYSE under the ticker NSCL while retaining its UK domicile.
• The company reported a net loss of $1 billion on $141 million in revenue for the first half of 2026, with the bulk of the loss driven by non-cash charges.
• Revenue grew 1,252% year-over-year, driven by a landmark $45 billion, six-year contract with Anthropic for capacity in West Virginia.
• Nvidia is a key partner, having invested over $2 billion, guaranteed $860 million in lease obligations, and signed a $1.2 billion capacity lease with Nscale.
• The company has raised $3.7 billion in equity and over $5 billion in debt, with a pipeline of 1.3GW of capacity to fulfill $101 billion in contracts.
• A retail offering for UK investors will be launched via the platform RetailBook, allowing them to buy shares at the same price as existing shareholders.

Background

Nscale emerged from stealth in 2024 after spinning out of Australian bitcoin mining group Arkon Energy. It has rapidly become one of Europe’s best-funded data centre providers, backed by investors including Aker, 8090 Industries, and Fidelity. The company’s growth coincides with a broader surge in AI infrastructure demand, though recent market volatility has been triggered by calls from AI leaders like Dario Amodei and Sam Altman for an industry slowdown. This filing follows similar moves by competitors like CoreWeave and SoftBank’s SB Energy, which is also targeting a $50 billion valuation.

How outlets are covering it

The Financial Times emphasizes the strategic timing of the IPO amidst growing calls for an AI slowdown, noting that Nscale’s filing follows the withdrawal of Holtec International’s IPO due to investor concerns. It highlights the depth of Nvidia’s involvement, including convertible notes and lease guarantees. CNBC focuses on the financial metrics, noting the 1,252% revenue growth and the diversification into inference services, including the planned acquisition of Anyscale. CNBC also notes that one unnamed customer accounted for over half of Nscale’s revenue in the first half of 2026, suggesting concentration risk, whereas the FT highlights the broad range of major clients including Microsoft and OpenAI.

Why it matters

Nscale’s IPO signals continued investor appetite for AI infrastructure despite concerns about a potential slowdown in capital investment. The company’s massive contract backlog and partnerships with major tech firms underscore the critical role of data centres in the AI ecosystem. Its success or failure could influence the trajectory of other AI infrastructure firms seeking public listings, such as SoftBank’s SB Energy and Westinghouse Electric.

What to watch

Nscale aims to list on the NYSE in the coming weeks, with a retail offering for UK investors. The company plans to bring its West Virginia data centre online late next year, which is estimated to cost $70 billion, including a 2-gigawatt natural gas power plant. It also intends to complete the acquisition of Anyscale to expand its inference capabilities. Market reaction will depend on investor confidence in AI infrastructure demand amid ongoing debates about an industry slowdown.