Loss-Making Nscale Seeks $35 Billion IPO Amid Funding Concerns

Nscale, an AI data center provider, has filed for a $35 billion IPO despite consistently losing money. In the first half of 2026, Nscale's revenue was $140.6 million but its net loss was $1 billion.

The company has never made a profit and in fact warned that management had 'substantial doubt' about its ability to continue as a going concern due to reliance on uncommitted debt and equity financing.

Nscale did receive $3.1 billion from Nvidia in exchange for convertible loan notes, but still has significant future funding requirements and warns that it will need additional capital to fund its business.