Nscale's IPO Valuation Skyrockets Amid Concerns Over Contract Concentration
Nscale, an AI data center developer based in the UK, has filed for an IPO on the New York Stock Exchange under the ticker symbol 'NSCL', with a valuation of $35 billion. The company's contract value is an eye-catching $103.4 billion, rivaling that of established infrastructure giants. However, upon closer inspection, it appears that Microsoft and Anthropic together account for 85% of Nscale's total contract value.
Microsoft has signed multiple agreements with Nscale totaling approximately $43.8 billion, while Anthropic entered into a $44.6 billion computing-power leasing agreement with the company. The concentration is even more stark on the revenue side, with a single largest customer accounting for 52% of Nscale's revenue in the first half of 2026.
Nscale's financial results show a net loss of over $1 billion, despite a twelvefold year-over-year increase in revenue. The cost-of-revenue ratio has turned negative, and the balance sheet is under strain with liabilities exceeding $8 billion.