Nscale Eyes Fall IPO With $25 Billion Valuation Amid Microsoft-Backed Deals

Nscale, a London-based startup backed by Nvidia, is gearing up for an initial public offering (IPO) this fall with a valuation of approximately $25 billion.

The company has retained Goldman Sachs and JPMorgan to lead the listing process, which could potentially take place in New York. This valuation is nearly double what investors paid in March when Nscale raised $2 billion in a Series C round, valuing the startup at $14.6 billion.

Nscale's business model involves building and operating data centers packed with Nvidia GPUs, then renting that compute capacity to clients like Microsoft. The latter has signed massive deals with Nscale, including a $6.2 billion agreement in September 2025 for AI compute from a data center in Norway. Another deal inked in October 2025 covers around 200,000 Nvidia GB300 chips across new campuses in Texas and Portugal.

Nscale's relationship with Microsoft is the backbone of its pitch to public investors, which highlights one of the largest AI infrastructure contracts ever signed. However, Nscale has also faced challenges, such as OpenAI backing out of a planned 100,000-GPU gigafactory in Norway. The site was eventually leased to Microsoft instead.

Nscale is not just focusing on securing more hardware contracts but is also building its executive bench ahead of the IPO. This move aims to demonstrate strong governance and prepare for scrutiny from public shareholders.