AI cloud firm Nscale files for U.S. IPO, seeking valuation up to $35 billion

Nscale, a London-headquartered provider of cloud computing infrastructure for artificial intelligence, filed paperwork with U.S. regulators on Friday to go public, becoming the latest AI infrastructure company to test investor appetite for a sector that has drawn both massive capital and growing scrutiny.

According to a statement announcing the filing, Nscale has applied to list its shares on the New York Stock Exchange under the ticker "NSCL," with Goldman Sachs, J.P. Morgan and Morgan Stanley acting as lead underwriters alongside more than a dozen additional banks. The number of shares to be sold and their price range were not disclosed, but people familiar with the offering have said Nscale is targeting a valuation of roughly $30 billion to $35 billion, up sharply from the $14.6 billion valuation it commanded in a private funding round earlier this year.

The company's registration statement filed with the Securities and Exchange Commission shows revenue of $140.6 million for the first six months of 2026, up from $10.4 million a year earlier, a growth rate of more than 1,200 percent. That growth came at a steep cost: Nscale posted a net loss of $1.02 billion for the same six-month period, widening from a $368.9 million loss a year earlier, as it poured money into building data centers, power infrastructure and graphics-processing capacity. As of the end of August, the company reported roughly 461,000 GPUs active or under contract and $103.4 billion in total contracted value across long-term customer agreements, up from $38 billion at the end of 2025, though only $2.6 billion of that value is currently active revenue.

Founded in 2024 after spinning out of the energy company Arkon Energy, Nscale is led by founder and chief executive Josh Payne and describes itself as a "full-stack AI hyperscaler," combining power generation, data centers, GPU clusters and software under one roof. Nvidia and Microsoft are among its technology partners, and its board includes former Facebook chief operating officer Sheryl Sandberg and former U.K. deputy prime minister Nick Clegg. The filing also confirmed Nscale's roughly $1.65 billion acquisition of Anyscale, a software platform for scaling AI workloads, which the company expects to close around the time of its public listing.

The filing adds Nscale to a growing list of AI infrastructure firms pursuing public listings this year as demand for computing capacity to train and run large AI models continues to outstrip supply. Nscale has raised more than $3.3 billion in private funding to date and secured an additional $3 billion in debt financing in August tied to data-center projects in Texas and North Carolina, according to a detailed account of the filing. The company's widening losses reflect a broader pattern among AI infrastructure providers, which are spending heavily upfront on land, power and chips in long-term bets that customer demand for AI computing will continue to grow.

Investors have grown more attentive in recent months to so-called circular financing arrangements in the AI sector, in which chipmakers, cloud providers and AI developers invest in or lend to one another, and to whether contracted revenue commitments will convert into cash. A wire report on the filing noted Nscale is pressing ahead despite choppy conditions in broader markets. The IPO timeline, including pricing and the date of the listing, has not yet been set.