Catenaa, Monday, October 19, 2026- Nscale is facing investor resistance over its expected $30 billion US IPO valuation, Bloomberg News reported.
Accordingly, quoting sources familiar with the matter, Bloomberg News reported that A group of investors has argued for a valuation of $16 billion to $19 billion instead after the implosion of Australian AI data center company Firmus’ IPO plan.
Bloomberg News reported that investor resistance could also have been driven by Microsoft’s recent call-off of the Essex AI data center deal, after the site faced delays due to power constraints.
Nscale submitted its US IPO registration documents on September 18, proposing to list on the New York Stock Exchange under the ticker NSCL. The filing has yet to disclose the number of shares to be offered or their expected price. Goldman Sachs, JPMorgan and Morgan Stanley are managing the offering.
Differences between Nscale’s proposed valuation and what investors are willing to pay could delay its listing. Bloomberg reported that the disagreement reflects uncertainty about financing costs and how quickly conditions in the AI infrastructure sector might improve.
According to Bloomberg News, Nscale is yet to market shares to potential investors, despite the SEC-mandated 15-day waiting period being over.
Nscale is still responding to SEC queries and expects to launch the share offering once the process is complete, Bloomberg News said.
Bloomberg News said that as investor sentiment toward AI infrastructure firms soured, Nscale’s peers, such as CoreWeave, shed 25% of their value last week and Nebius shed 32% of its value in the last 2 weeks, with higher borrowing costs weighing on the group.
According to Quartz, Nscale had presented investors with roughly $103 billion in total contracted revenue as it moved toward a possible listing.
In its filing as cited by Quartz, the company said it had $103.4 billion of active and contracted total contract value as of August 31. That includes agreements with Anthropic that provide for payments of up to about $44.6 billion.
Nscale reported revenue of $140.6 million and a net loss of $1.02 billion for the six months ended June 30. The company said it has identified material weaknesses in its internal control over financial reporting.
