Nvidia-Backed Nscale Files for $35 Billion NYSE IPO

Nscale, a UK AI cloud services provider backed by Nvidia, has filed an S-1 registration statement with the SEC to list on the New York Stock Exchange under the ticker 'NSCL', targeting a valuation of up to $35 billion. The company was spun off from cryptocurrency mining firm Arkon Energy in 2024 and has since become one of Europe's best-capitalized data center companies.

Nscale posted revenue of $140.6 million for the first half of this year, a 12.5-fold increase from last year, but widened its net losses to $1.02 billion. The company's largest customer agreement is with AI startup Anthropic, which signed a six-year compute leasing contract valued at up to $45 billion.

Nvidia plays a triple role in the Nscale ecosystem: GPU supplier, compute capacity lessee, and financial backer, having invested over $2 billion in the company. The UK government has designated Nscale as part of the 'Stargate' project, which aims to deploy up to 300,000 GPUs in the UK.

The IPO is expected to raise around $3 billion for Nscale, with Goldman Sachs, JPMorgan Chase, and Morgan Stanley serving as joint lead underwriters. The company's data center collaboration with Microsoft continues to expand, with an agreement to add more than 30,000 Nvidia chips on top of the existing leasing arrangement.