Nscale, a London-based neocloud company backed by Nvidia, filed for a New York IPO last week with a valuation of up to $35 billion, according to fortune.com. Founded in 2024 by Josh Payne after spinning out of Australian crypto miner Arkon Energy, Nscale provides AI-ready data centers and rents computing power. The company reported a net loss of $1.02 billion in the six months ending June 30, 2026.
The S-1 filing reveals that despite its rapid growth, Nscale’s losses have significantly outpaced its revenues, raising concerns about its financial sustainability. The company’s management even flagged “substantial doubt” about its ability to continue as a going concern. The board includes notable figures such as former Meta COO Sheryl Sandberg, former U.K. deputy prime minister Nick Clegg, and former Yahoo president Susan Decker, indicating strong leadership backing the IPO process.
Nscale operates in the emerging neocloud sector, which focuses on building or financing AI-ready data centers to meet growing demand for AI computing power. The company’s $35 billion valuation places it among the largest AI infrastructure IPOs to date, reflecting investor appetite for cloud services tailored to AI workloads. This move follows a broader trend of billion-dollar AI-related IPOs as companies race to capitalize on the expanding AI market.
Nscale’s IPO filing last week marks a critical step in its growth trajectory, with the company aiming to leverage public markets to fund expansion. The next major milestone will be the pricing of its shares, which will determine whether the $35 billion valuation holds amid concerns over its financial losses, as detailed in the S-1 filing.