Nvidia (NASDAQ:NVDA)-backed British AI infrastructure provider Nscale filed for an initial public offering (IPO) on the New York Stock Exchange this week, seeking to list under the ticker “NSCL” as it rides explosive demand for computing power.
Revenue Surges, but Losses Mount
London-based Nscale reported $140.6 million in revenue for the six months ended Jun. 30, according to its IPO prospectus. That was a 1,252% increase from the $10.4 million it reported during the same period a year earlier.
However, the neocloud provider’s net losses also increased, reaching $1.02 billion compared with $368.9 million a year earlier. Nscale also reported $56.4 billion in remaining performance obligations. More than half of its revenue during the first half of the year came from one unnamed customer.
Big-Name Backers and AI Deals
Nscale rents Nvidia GPUs to AI companies such as OpenAI and Anthropic, both of which are preparing for their own potential public offerings. It also has a partnership with Microsoft (NASDAQ:MSFT).
The company competes with Amazon (NASDAQ:AMZN) as well as other neocloud providers CoreWeave (NASDAQ:CRWV) and Nebius (NASDAQ:NBIS).
Recently, Humanoid robotics startup Figure AI has also committed $3.5 billion of compute to Nscale, underscoring demand beyond traditional AI labs.
As of Aug. 31, Nscale had 25,000 active GPUs, with another 461,000 either active or under contract. These GPUs were spread across five active data centers and 12 contracted facilities.
The company’s investors include Blue Owl, Dell (NYSE:DELL), Nvidia and Fidelity. In March, Nscale raised $2 billion, valuing it at $14.6 billion. The company has more than $8 billion in debt, CNBC reported.
Founder and CEO Josh Payne, in a letter to prospective investors included with the filing, wrote: “From inception, we built Nscale with an infrastructure-first thesis, building against contracted customer demand, underwriting projects to attractive long-term returns, maintaining prudent leverage and seeking to match the duration of our capital commitments with the strong revenues supporting them.”
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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