Nvidia-backed AI cloud firm Nscale reveals revenue surge in US IPO filing

Nscale, a British cloud provider backed by chip giant Nvidia, said on Friday (18 September) its revenue surged 1,252% in the first half of 2026, as it looks to tap investor appetite for AI stocks.

The London-based company posted a net loss of $1.02 billion on revenue of $140.6 million in the six months ended 30 June, compared with a net loss of $368.9 million on revenue of $10.4 million a year earlier, according to its IPO filing.

The listing is set to test investor appetite for AI infrastructure stocks after calls from CEOs of top AI labs earlier this month for a slowdown in the development of the technology rattled markets.

"The setup for AI infrastructure is good enough to get these deals done, but it's nothing like the euphoria of a few months ago," said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.

"Neocloud players seem to be holding up better than the AI infrastructure stocks that sit further up the supply chain."

Cloud provider Nebius this week unveiled price hikes, while CoreWeave said it continues to sign contracts at higher prices, underscoring solid demand for computing capacity.

Nscale, which plans to sell new shares, is targeting a multibillion-dollar listing and a valuation of about $30 billion, CNBC reported. The firm was valued at $14.6 billion in a March funding round.

This week, Nscale agreed to sell $3.1 billion of convertible bonds to investors, including $1 billion to Nvidia, according to its filing.

Over $100 billion of contracted revenue
The company provides infrastructure, including compute, power and data centres, as well as software for training and running AI models. It operates in 14 regions and has a power pipeline of more than 10 gigawatts.

Nscale, which competes against CoreWeave, Nebius, Crusoe and Lambda, has grown rapidly since its launch, scaling to more than $103 billion in total contracted value from $100 million in only two and a half years.

The firm has landed big wins this year. AI lab Anthropic last month struck a deal to spend $45 billion to rent AI cloud computing power from Nscale's West Virginia data centre campus.

"Despite some negative headlines, this space is still attracting billions. There are still major bottlenecks in AI compute and power infrastructure," Kennedy said, adding that Nscale's more than $100 billion in total contract value was a main selling point.

A huge chunk of its revenue, however, comes from a limited number of customers. Its largest customer accounted for 52% of its revenue in the first half of 2026.

Microsoft and Anthropic are expected to be major Nscale customers in future periods, according to its prospectus.

Goldman Sachs, JP Morgan and Morgan Stanley are the lead underwriters for the offering. Nscale plans to list on the NYSE under the symbol "NSCL".