ByteDance's Chip Deal Fuels Nscale's $35 Billion IPO
Nscale's $35 billion IPO is heavily dependent on ByteDance's access to Nvidia's chips. The company, which generated $33 million in revenue in 2025 and an additional $140.6 million through the first half of 2026, has a significant customer base that includes ByteDance, which accounted for 73% of Nscale's revenue in 2025.
The agreement between Nscale and ByteDance is not mentioned in the company's S-1 IPO filing but can be found in Exhibit 10.9 to a September 2025 'draft registration statement' disclosing a loan from Macquarie, the investment bank.
ByteDance used Nscale's cloud facility in Norway to access Nvidia chips that it would otherwise have been unable to buy in China, exploiting a loophole in US trade restrictions, according to filings. This arrangement exposes companies such as Nscale to regulatory and reputational risks at a time when the U.S. and China are engaged in a high-stakes race to dominate the fast-growing technology.
Nscale warns in its S-1 that its business is highly dependent on a small number of customers, with 52% of revenue coming from its largest customer during the more recent period.