Nscale's IPO Valuation Target Faces Investor Resistance Amid AI Market Slowdown
Key Summary
Nscale, a London-based AI infrastructure company, is facing investor resistance over its IPO valuation target of $35 billion, citing concerns over project delays, financing issues, and rival listings being shelved.
Nscale wants public markets to value it at up to $35 billion. According to Bloomberg, a number of investors are pushing back on that figure.
The London-based AI infrastructure company is trying to go public just as enthusiasm for AI build-outs is cooling, construction schedules are slipping, and rival listings are being shelved.
What Nscale is asking for Nscale filed its S-1 registration statement with the US SEC on September 18, 2026. It plans to list on the NYSE under the ticker NSCL.
The company is looking to raise approximately $3 billion through new shares. Its valuation target reaches as high as $35 billion, although some reports put the figure closer to $30 billion.
That is a big step up from its last private price. Nscale was valued at $14.6 billion in its Series C round in March 2026, so the top of the target is roughly 2.4 times that mark.
Nscale can at least point to the quarter. First-half 2026 revenue came in at $140.6 million, compared with $10.4 million a year earlier, a 1,252% increase.
The filing showed a net loss of $1.02 billion, which means the company is spending heavily to reach a size that the revenue line has not yet caught up with.
The backlog problem
The bull case depends on Nscale's contract book. The company reports about $103.4 billion in total contracted value, most of it tied to Microsoft and Anthropic.
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Very little of Nscale's $103.4 billion backlog is producing revenue so far. As of late August, only around 2.5% of that contracted value was active.
Nscale's Norwegian facility is running six months behind schedule, with 6.4 MW operational against a 30 MW target.
AI, tech, and the markets they move—
Microsoft pulled out of a planned UK data center project because of difficulties securing power.
Customer concentration is the other concern. With Microsoft and Anthropic holding most of the backlog, a change of plans at either could reshape Nscale's revenue outlook. The company's heavy debt load adds to that risk, since borrowing costs keep coming due whether or not the data centers open on time.
A tough room for AI listings Several AI infrastructure IPOs have been canceled or postponed. Firmus abandoned its listing plans entirely.
Public comparables have not helped. CoreWeave, the best-known listed neocloud, has seen its shares fall roughly 15-25% amid the sector pullback. Calls from some industry leaders for a slowdown in AI development have also triggered sell-offs across related stocks.