Nscale IPO Faces Valuation Pushback and Delays

Nscale’s IPO plans face growing investor resistance, with a wide gap between the company’s valuation expectations and what some investors are willing to pay. The London-based AI cloud company had sought a valuation of up to $35 billion, more than double its $14.6 billion private valuation in March 2026. Later reports put its target at about $30 billion, while some investors reportedly favor $16 billion to $19 billion. Nscale has filed its listing application but has not started formal IPO marketing and is responding to comments from the US Securities and Exchange Commission. Its first-half revenue rose to $140.6 million from $10.4 million a year earlier, but it recorded a $1.02 billion net loss. Investors are also weighing a $103.4 billion contracted backlog, of which only about 2.5% was active by late August, alongside customer-concentration risk tied to Microsoft and Anthropic. A Norwegian data centre is six months behind schedule, and Microsoft withdrew from a planned UK project amid power constraints. Nscale’s $3.36 billion pre-IPO convertible-note financing, which included Nvidia and has a $30 billion conversion cap, provides another valuation reference. Rising borrowing costs, concerns about AI infrastructure returns and Firmus’s abandoned IPO plans have added to sector caution. Nscale may delay its IPO or accept a lower valuation; traders will be watching pricing, construction progress and the activation of customer contracts.