AI cloud firm Nscale files for NYSE IPO, with Nvidia as investor, customer and supplier

AI cloud services provider Nscale has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC), formally initiating its IPO process. The company plans to list on the New York Stock Exchange.

IPO Details

• Target valuation: Up to $35 billion (approximately RMB 235 billion)
• Fundraising target: Up to $3 billion (approximately RMB 20.1 billion)

Company Overview

Headquartered in London, Nscale was spun off from Arkon Energy in 2024. Founder Josh Payne believes the AI large model boom presents a transformative opportunity for the computing industry. The company has developed a unique "power to token" business model, aiming to integrate the full value chain—from electricity resources and data centers to GPU hardware, cloud computing, and model inference.

The company operates two main business segments:

• Nscale Infrastructure
• Nscale Cloud

Its core competitive advantage lies in low-cost renewable energy sources, including Norwegian hydropower and Icelandic geothermal energy.

Investor Interest and Shareholder Structure

Capital markets have shown strong enthusiasm for Nscale. In March 2026, the company completed a $2 billion Series C funding round at a post-money valuation of $14.6 billion.

Major shareholders:

• Aker ASA (Norwegian industrial investment group): Largest external shareholder, holding approximately 23.9% after multiple capital increases
• Nvidia: Plays a triple role as supplier, customer, and investor
• Supplies GPU hardware
• Signed large-scale computing lease agreements
• Invested approximately $3.1 billion (including $2.1 billion in convertible bonds and $1 billion in equity)
• Specific shareholding percentage not disclosed in the prospectus
• Other notable investors: Dell, Nokia Capital, Fidelity Investments

Nvidia CEO Jensen Huang described Nscale as a potential "national champion of UK AI infrastructure."

Business Performance and Growth

The company's rapid growth reflects surging demand for AI computing power:

| Metric | Value | |--------|-------| | H1 2026 Revenue | $140.6 million (up 1,252% YoY) | | Active GPUs (as of Aug 31) | ~25,000 | | GPUs in use or under contract | 461,000 | | Operational data centers | 5 | | Data centers under construction | 12 | | Controlled power resources | Over 10 GW | | Total contracted orders | $103 billion |

In February 2026, ABI Research ranked Nscale first among 14 global AI cloud service providers.

Financial Challenges

Despite rapid expansion, the company faces persistent losses due to its "spend-to-grow" model:

• H1 2026 net loss: $1.0201 billion (up 176% YoY)
• FY 2025 net loss: $761.8 million
• FY 2024 net loss: $78.2 million

Risk factors disclosed in the prospectus:

• Certain large customer contracts include pre-financing conditions
• If data center construction funding falls short of expectations, related contracts may be terminated

Key Customers and Strategic Moves

Core customers:

• Microsoft
• Anthropic

These two clients account for 85% of total contract value. Long-term computing agreements provide stable future revenue expectations.

Recent acquisition: In July, Nscale acquired AI software startup Anyscale for $1.65 billion, aiming to become a full-stack provider integrating hardware and software.

Expansion areas:

• Robotics
• Autonomous driving
• Southeast Asian market (Indonesia site under development)

Competitive Landscape

Nscale faces intense competition in the computing power sector, including:

• CoreWeave (CRWV.O, market cap ~$48.3 billion)
• Nebius (NBIS.O, market cap ~$64.5 billion)
• Traditional cloud giants such as Amazon and Microsoft, which are also increasing computing infrastructure investment

As global AI computing supply becomes more abundant and AI model efficiency continues to improve, computing leasing companies may face declining pricing power and margin pressure. Whether Nscale can achieve a second growth curve through software services remains an open question post-IPO.

Industry Perspective

Industry analysts view Nscale's IPO as a representative example of the global AI computing infrastructure boom. While AI's rigid demand for computing power creates a massive market, the capital-intensive, asset-heavy nature of the business imposes stringent requirements on financial strength, project execution capabilities, and customer risk management. This race—from electricity to AI services—is expected to reshape the global AI computing industry landscape over the next decade.